
To state: Importance of financing, cost-benefit analysis, revenue and profits.

Answer to Problem 1R
Finance helps the firms to wisely utilize their money. Cost benefit analysis helps to choose a better option for a business by analyzing the benefit caused from a particular cost.
Explanation of Solution
Business means production and distribution of goods and services to comply to the needs of consumers. For an efficient working of a business, finance is the key factor. The channelization of funds, profit coming to the company, daily flow of cash, etc are all aspects of financing. Finance helps the firms to wisely utilize their money.
Cost benefit analysis helps to choose a better option for a business by analyzing the benefit caused from a particular cost. If the benefit is high from less cost, one would choose that option otherwise would go for the other one.
Revenue is the total income earned by a company through sale of goods and services.
Profit is the net income earned by the company after subtracting all the expenses and other costs from the revenue.
Introduction: Business means production and distribution of goods and services to comply to the needs of consumers. For an efficient working of a business, finance is the key factor.
Chapter 10 Solutions
Economics Today and Tomorrow, Student Edition
Additional Business Textbook Solutions
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
Principles of Operations Management: Sustainability and Supply Chain Management (10th Edition)
Financial Accounting, Student Value Edition (5th Edition)
Corporate Finance (4th Edition) (Pearson Series in Finance) - Standalone book
Horngren's Accounting (12th Edition)
MARKETING:REAL PEOPLE,REAL CHOICES
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