| Former-Teacher | Date: Monday, 04.04.2011, 10:07 | Message # 1 |
 Dean
Group: Admins
Messages: 504
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| This will be a serious talk about saving money for business purposes.
Doing small-scale or big-scale business takes some or a lot of money.
Now, your business alive and kicking, do you need to save money? For what purpose?
Is it a bad thing to spend the earned money on yourself or others?
Must a business person spend money on business growth?
Can you you briefly name three reasons why a business enterprise must try to cut expenses and save money?
What does it mean 'to cut expenses'?
If a business enterprise cuts expenses, must it transfer the saved money to social needs?
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| Teacher | Date: Saturday, 09.04.2011, 02:48 | Message # 2 |
 Head teacher
Group: Admins
Messages: 375
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| Of course, we need to save money. There can be several purposes. The first one are risks. The main risk is bankruptcy. Nobody can feel secured against it. So we always need an amount of money in order not to lose everything. One more purpose is new achievements in business. E.g. we have shop and want to create a store chain, so we need money for this.
It's not a bad thing to spend the earned money on yourself or others. We earn money ourselves and only we decide to spend or not to spend them and on whom to spend. Money are earned to spend them on smth. To make money only for making money is useless and stupid, as I think.
I should say that we can call spending money on business growth a copy-book maxim. A good businessman is a person who always cares about his business and develops it.
A business enterprise must try to cut expenses in order to avoid bankruptcy, to increase business or ... actually, I can't name any other reason.
To cut expenses means to spend less money on the same things, to remove some points from business-plan, to reduce the number of staff, etc.
Probably, a business enterprise can transfer the saved money to social needs. But it depends on a set of factors.
In Vino Veritas...
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