Sometimes we can see that some government companies suffer losses where as the public limited company can earn profit in the same side. Why ?... Explain briefly.
Answers
Answer:
Firms often make decisions that involve spending money in the present and expecting to earn profits in the future. Examples include when a firm buys a machine that will last 10 years, or builds a new plant that will last for 30 years, or starts a research and development project. Firms can raise the financial capital they need to pay for such projects in four main ways: (1) from early-stage investors; (2) by reinvesting profits; (3) by borrowing through banks or bonds; and (4) by selling stock. When owners of a business choose sources of financial capital, they also choose how to pay for them.
Early Stage Financial Capital
Firms that are just beginning often have an idea or a prototype for a product or service to sell, but few customers, or even no customers at all, and thus are not earning profits. Such firms face a difficult problem when it comes to raising financial capital: How can a firm that has not yet demonstrated any ability to earn profits pay a rate of return to financial investors?
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Answer:
Think of it you can write it by your own ..some important points are situation , difference between public limited company and government company , 1st think of this and then take all the difference between these two topic nd find the difference, n there you go!!!
Explanation:
Ur own ans is created by the help of some small points.
I hope this helps you have a great thinking!