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Name any two factors kept in mind while setting up an enterprise?
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Name any two factors kept in mind while setting up an enterprise?
Factors to consider while setting up an enterprise:
1. Market Research:
- Conduct thorough market research to identify the demand for your product or service. This includes analyzing the target market, competition, and potential customers. Understanding market trends and consumer behavior will help in making informed decisions about your business.
- Market research also involves studying the pricing strategies of competitors, identifying gaps in the market, and understanding the preferences of your target audience. This data will help in developing a unique selling proposition and positioning your business effectively in the market.
2. Financial Planning:
- Create a detailed financial plan that outlines the initial investment required, operating costs, revenue projections, and break-even analysis. Consider factors such as funding sources, pricing strategy, and cash flow management.
- It is essential to estimate the costs associated with setting up the enterprise, including equipment, supplies, marketing, and employee salaries. Additionally, forecasting revenue and setting financial goals will help in monitoring the financial health of the business and making adjustments as needed.
By carefully considering these factors, you can increase the likelihood of success for your enterprise. Conducting market research and developing a solid financial plan will provide a strong foundation for your business and help in making informed decisions throughout the setup process.
Community Answer
Name any two factors kept in mind while setting up an enterprise?
(1) nature of business
(2) scale or size of business
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Read the following hypothetical Case Study and answer the given questions:The business which follows the convention of prudence keeps provisions and reserves so that they can keep the liquidity of the firm and help it in the time of crisis. But, what are exactly Reserves and Provisions. When we talk about provisions, they mean setting aside a part of the profits for meeting a known future liability, the amount of which is not accurately known at the time of finalization of financial statements. It is made for meeting known future liability. The amount of the liability cannot be determined accurately. It is charge against profit reducing the profit. Provisions serve a lot of purposes. It helps in ascertaining the true net profit of the entity. The true financial position can be determined adequately. It helps in providing funds for the liabilities that may occur in future. It helps in the proper allocation of expenses that are incurred over the time.Reserves, on the other hand, means an appropriation of profits or other surplus to strengthen the liquid resources of the business enterprise and not for meeting any liability, contingency or any commitment of the business. They are retained or undistributed net profit. It is voluntarily done to strengthen the financial position of the firm. It can be used for investing in outside securities. Like provisions, reserves are also very important for the business enterprises. It helps in meeting any unforeseen expenses. It strengthens the financial position of the firm. It helps in equal distribution of profit. It helps in providing funds to meet liability____________ means setting aside a part of the profits for meeting a known future liability.

Read the following hypothetical Case Study and answer the given questions:The business which follows the convention of prudence keeps provisions and reserves so that they can keep the liquidity of the firm and help it in the time of crisis. But, what are exactly Reserves and Provisions. When we talk about provisions, they mean setting aside a part of the profits for meeting a known future liability, the amount of which is not accurately known at the time of finalization of financial statements. It is made for meeting known future liability. The amount of the liability cannot be determined accurately. It is charge against profit reducing the profit. Provisions serve a lot of purposes. It helps in ascertaining the true net profit of the entity. The true financial position can be determined adequately. It helps in providing funds for the liabilities that may occur in future. It helps in the proper allocation of expenses that are incurred over the time.Reserves, on the other hand, means an appropriation of profits or other surplus to strengthen the liquid resources of the business enterprise and not for meeting any liability, contingency or any commitment of the business. They are retained or undistributed net profit. It is voluntarily done to strengthen the financial position of the firm. It can be used for investing in outside securities. Like provisions, reserves are also very important for the business enterprises. It helps in meeting any unforeseen expenses. It strengthens the financial position of the firm. It helps in equal distribution of profit. It helps in providing funds to meet liability____________ means an appropriation of profits or other surplus to strengthen the liquid resources of the business enterprise.

Read the following hypothetical Case Study and answer the given questions:The business which follows the convention of prudence keeps provisions and reserves so that they can keep the liquidity of the firm and help it in the time of crisis. But, what are exactly Reserves and Provisions. When we talk about provisions, they mean setting aside a part of the profits for meeting a known future liability, the amount of which is not accurately known at the time of finalization of financial statements. It is made for meeting known future liability. The amount of the liability cannot be determined accurately. It is charge against profit reducing the profit. Provisions serve a lot of purposes. It helps in ascertaining the true net profit of the entity. The true financial position can be determined adequately. It helps in providing funds for the liabilities that may occur in future. It helps in the proper allocation of expenses that are incurred over the time.Reserves, on the other hand, means an appropriation of profits or other surplus to strengthen the liquid resources of the business enterprise and not for meeting any liability, contingency or any commitment of the business. They are retained or undistributed net profit. It is voluntarily done to strengthen the financial position of the firm. It can be used for investing in outside securities. Like provisions, reserves are also very important for the business enterprises. It helps in meeting any unforeseen expenses. It strengthens the financial position of the firm. It helps in equal distribution of profit. It helps in providing funds to meet liabilityWhich of the following is not a characteristic of Provisions?

Read the following hypothetical Case Study and answer the given questions:The business which follows the convention of prudence keeps provisions and reserves so that they can keep the liquidity of the firm and help it in the time of crisis. But, what are exactly Reserves and Provisions. When we talk about provisions, they mean setting aside a part of the profits for meeting a known future liability, the amount of which is not accurately known at the time of finalization of financial statements. It is made for meeting known future liability. The amount of the liability cannot be determined accurately. It is charge against profit reducing the profit. Provisions serve a lot of purposes. It helps in ascertaining the true net profit of the entity. The true financial position can be determined adequately. It helps in providing funds for the liabilities that may occur in future. It helps in the proper allocation of expenses that are incurred over the time.Reserves, on the other hand, means an appropriation of profits or other surplus to strengthen the liquid resources of the business enterprise and not for meeting any liability, contingency or any commitment of the business. They are retained or undistributed net profit. It is voluntarily done to strengthen the financial position of the firm. It can be used for investing in outside securities. Like provisions, reserves are also very important for the business enterprises. It helps in meeting any unforeseen expenses. It strengthens the financial position of the firm. It helps in equal distribution of profit. It helps in providing funds to meet liabilityWhich of the following is not an importance of Reserve?

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Name any two factors kept in mind while setting up an enterprise?
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