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What is an example of the proper use of capital in a business?

Answer and explanation

Correct answer: Investing money thoughtfully in necessary expenses

Capital is a limited business resource, so it should be directed towards productive and necessary purposes, such as purchasing materials, paying essential expenses, or improving operations. Thoughtful investment supports continuity and growth. Spending on show, lending without records, or ignoring expenses can create waste, losses, and cash-flow problems.

Related tags

Business FinanceCapital ManagementFinancial PlanningConceptNature And Importance Of Business FinanceConcept Nature And Importance Of Business FinanceSources Of Business FinanceBusiness StudiesClass 11 Mcq

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