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Why is saving useful in business?

Answer and explanation

Correct answer: To keep money for future needs

Business savings create a reserve that can support future purchases, repairs, expansion, or periods of low sales. Saving does not mean refusing every necessary expense; it means using available money carefully and retaining part of it for planned or unexpected needs. Spending everything immediately weakens financial stability. Therefore, option A correctly explains the usefulness of saving.

Related tags

Business SavingFinancial ManagementConceptNature And Importance Of Business FinanceConcept Nature And Importance Of Business FinanceSources Of Business FinanceBusiness StudiesClass 11 Mcq

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