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Why are saving and reinvestment useful for an entrepreneur?

Answer and explanation

Correct answer: To support future growth and difficult times

Saving creates a financial reserve that can help meet unexpected expenses or weak sales periods. Reinvestment means putting part of the earnings back into the enterprise for equipment, stock, technology, marketing, or expansion. Therefore option A is correct. Spending everything immediately removes flexibility, while closing the business or removing customers is unrelated to these practices.

Related tags

SavingReinvestmentOwner’s FundsOwner S FundsSources Of Business FinanceBusiness StudiesClass 11 Mcq

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