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An entrepreneur uses all profit for personal spending and makes no reinvestment in the business. What future problem may arise?

Answer and explanation

Correct answer: तकनीक, गुणवत्ता और क्षमता में सुधार रुक सकता है

Reinvestment can fund equipment, maintenance, employee development, product improvement and expansion. If all surplus is withdrawn, the business may lack money to maintain competitiveness or respond to changing customer needs. Reinvestment is not always compulsory in the same amount, but ignoring it can restrict future capacity and quality.

Related tags

ReinvestmentBusiness-GrowthIntroduction To EntrepreneurshipEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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