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.
Frequently asked questions
What is the correct answer to this question?
To keep money for future needs
Why is this the correct answer?
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.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Sources of Business Finance. Topic: Concept, nature and importance of business finance.
