04-15-2005, 01:50 AM
Business is for profit not for cash so profit is more importent then cash.
If you are earning profit (in any form) but not cash you are ok but if you are earning cash but facing loss, is that ok? NO.
Cash is not every thing in business. When you will earn profit, you'll raise reserves in short term but when they will be enough you'll invest them somewhere i.e shares etc. For what? For profit.
In the international business, one can't trust cash for it is more sensitive and risky than local business. Worldwide, currency value changes very quickly and can bring a loss. While if you keep your cash in cerculation (profit>>>investment>>>profit), it never goes away. To keep cash with you, what did you needed? Profit.
Cash is kept in form of reserves which increases liability of a company while investment and profit both bring goodwill. It is good that your company is a holding one or is paying good profits rather then it likes to keep cash in reserves more then needed.
You can run a profitable business with low or even no capital. Isn't it? Yes. A business based on services.
I think its enough.
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```*``` I love stars;
*`*`*`* Shining;
`*`*`*` and Smiling;
*`````* Always.
------------------------
[email protected]
http//www.shahid-fss.tk
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If you are earning profit (in any form) but not cash you are ok but if you are earning cash but facing loss, is that ok? NO.
Cash is not every thing in business. When you will earn profit, you'll raise reserves in short term but when they will be enough you'll invest them somewhere i.e shares etc. For what? For profit.
In the international business, one can't trust cash for it is more sensitive and risky than local business. Worldwide, currency value changes very quickly and can bring a loss. While if you keep your cash in cerculation (profit>>>investment>>>profit), it never goes away. To keep cash with you, what did you needed? Profit.
Cash is kept in form of reserves which increases liability of a company while investment and profit both bring goodwill. It is good that your company is a holding one or is paying good profits rather then it likes to keep cash in reserves more then needed.
You can run a profitable business with low or even no capital. Isn't it? Yes. A business based on services.
I think its enough.
========================
```*``` I love stars;
*`*`*`* Shining;
`*`*`*` and Smiling;
*`````* Always.
------------------------
[email protected]
http//www.shahid-fss.tk
========================
