ENTREPRENEURIAL PLANNING
FINANCIAL PLANNING AND ANALYSIS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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How much profit is generated from the investment
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Cash available to the business to meet day-to-day expenses
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Any individual or group with an interest in a business
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The money invested into a business by the owners to allow it to begin sales
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Detailed explanation-1: -Cash reserves are funds that companies set aside for use in emergency situations. The cash that is saved is used to cover costs or expenses that are unplanned or unexpected.
Detailed explanation-2: -Cash Reserve is a specified minimum function of the total deposites of customers, which commercial bank have to hold as reserves either in cash or as deposits with the Central bank. The aim here is to ensure that banks do not run and of cash to meet the payment demands of their depositors.
Detailed explanation-3: -Subtract the expenses from the revenue to find your cash burn rate (the amount of money you lost from expenses). Multiply your net burn rate by the number of months you want to save for in your cash reserve. For example, if you want a reserve that will last three months, multiply the net burn rate by three.