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An entrepreneur invests a large portion of profit in technology and training instead of withdrawing it. Which function does this show?

Answer and explanation

Correct answer: Strategic reinvestment

Using current profit to improve technology and employee capability builds resources for future productivity, quality and growth. This deliberate use of earnings for long-term capacity is strategic reinvestment. Accounting may record the transaction, but recording is not the main decision described. Customer segmentation and conflict resolution do not explain investing profits in systems and training.

Related tags

ReinvestmentTechnologyTrainingQualities And Functions Of An EntrepreneurEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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