CBSE > Class 11 > Business Studies | CBSE Board | Homework Help

Anita has been successfully running a soft skills training company for the past five years in Bangalore. Her company has become popular and enjoys good reputation in the city. She now plans to start a chain of soft skills training centres and has identified four strategic places for the same in the city. Till now she has been managing all the financial requirements of her business through the profits made in her business. However, in order to implement her expansion plans funds will have to be raised externally. In the context of the above case: a) “Till now she has been managing all the financial requirements of her business through the profits made in her business”. Name the source of funds being mentioned in the statement. b) Suggest any one external source of funds that Anita can use to finance her expansion plans. Also, give any two features of such source of finance.

Posted by Siya Gupta 3 years, 9 months ago

CBSE > Class 11 > Business Studies

1 answers

Sarbha Rai 3 years, 9 months ago

Retained Earnings because expansion from profit made in business or the ploughing back of profit is termed as retained earnings Features: 1) Most depandable source=> Whenever we want the growth of business wa can do it with the help of retained earnings 2) Increase Creditworthiness=> Using retained earnings decreases our liability and debts that's why it is termed as cushion of security

1Thank You

ANSWER

Mahi Agarwal 3 years, 9 months ago

1) it is an economic activity. 2) it deals in goods and services on regular basis . 3) it helps in production and procurement of goods and services . 4) it's main aim is to earn profit .

0Thank You

Aditya Maheshwari 3 years, 8 months ago

A joint venture (JV) is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task.

Prachi Janwani 3 years, 9 months ago

A business is an economic activities which are concerned with the production, purchase, sale Or exchange of goods and services. It's main objective is to earn profit.

Fixed capital refers to expenses incurred for assets such as machine land Working capital refers to expenses incurred on daily basis like wages to labourers etc.

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