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Subjects

What is the importance of saving and reinvestment for an entrepreneur?

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Answer and explanation

Correct answer: उद्यम को बढ़ाने और कठिन समय संभालने में मदद मिलती है

Savings can provide a reserve for unexpected expenses, weak sales or temporary cash shortages. Reinvestment puts part of the available money back into useful assets such as equipment, training, inventory or expansion. It must be planned carefully; it is not automatically profitable, but it supports stability and growth.

Tags

savingreinvestmentOwner’s Fundsowner s fundsSources of Business FinanceBusiness StudiesClass 11 MCQ

Frequently asked questions

What is the correct answer to this question?

उद्यम को बढ़ाने और कठिन समय संभालने में मदद मिलती है

Why is this the correct answer?

Savings can provide a reserve for unexpected expenses, weak sales or temporary cash shortages. Reinvestment puts part of the available money back into useful assets such as equipment, training, inventory or expansion. It must be planned carefully; it is not automatically profitable, but it supports stability and growth.

Which subject and chapter does this question cover?

This is a Class 11 Business Studies question. Chapter: Sources of Business Finance. Topic: Owner’s Funds.

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