Business, financial statements & financial planning - financial planning for a trading business

5 important questions on Business, financial statements & financial planning - financial planning for a trading business

What does a trading business?

Buys and resells products without physically changing them

What must margin cover?

Other expenses, such as labor, rent and depreciation in order to make profit.

Reason why projected financial statements are composed:

They monitor two conditions essential for the survival of the business: profit and sufficient cash
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Why is profit an essential survival?

Without sufficient reward it is not attractive for the owners to stay involved in the business

Why is sufficient cash an essential survival?

A profitable business can go bankrupt because of a shortage of cash: business still have to

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