Question

A bussiness unit cannot move a single step without sufficient fund elaborate any five purpose for which fund are required

Answer 1

Funds are required in a business for these purposes.

Explanation:

Every business organisation require funds for verious different reasons.

Daily operations

• A company or an organisation need funds for every work that take place and it can only servive if they have sufficient funding for the daily operations and works.

For the working capital

• It is very important that a company or an organisation have sufficient working capital. it shows the financial capability of company.

To purchase assets

• Companies and organisation mainly needs funds to buy and purchase the assets and office goods, which are required in a business to maintain it's functionality.

To maintain a cash flow

• It is very important for company or an organisation that it has healthy cash flows, whether it's inward cash flow or outward cash flow, which they need to keep the business financially healthy.

To future growth

• company need funding for its future growth , So that the company, its employee and its value can grow.