Photo AI
Identify one reason, other than expansion, why a business may need to raise finance - OCR - GCSE Business - Question 17 - 2020 - Paper 1
Question 17
Identify one reason, other than expansion, why a business may need to raise finance. .................................................................................. show full transcript
Worked Solution & Example Answer:Identify one reason, other than expansion, why a business may need to raise finance - OCR - GCSE Business - Question 17 - 2020 - Paper 1
Step 1
Identify one reason, other than expansion, why a business may need to raise finance.
Answer
A business may need to raise finance for several reasons other than expansion. One significant reason is to cover operational costs. For instance, fluctuating revenues might necessitate additional funds to pay for daily expenses such as salaries, rent, and utilities, ensuring the business runs smoothly during lean periods.