why do business need finance? write any 4 points ...
Answers
Answer:
Finance refers to sources of money for a business. Firms need finance to: ... run the business, eg having enough cash to pay staff wages and suppliers on time. expand the business, eg having funds to pay for a new branch in a different city or country.
Answer:
Finance is the money available to spend on business needs.
Right from the moment someone thinks of a business idea, there needs to be cash. As the business grows there are inevitably greater calls for more money to finance expansion. The day to day running of the business also needs money.
The main reasons a business needs finance are to:
Start a business
Depending on the type of business, it will need to finance the purchase of assets, materials and employing people. There will also need to be money to cover the running costs. It may be some time before the business generates enough cash from sales to pay for these costs. Link to cash flow forecasting.