According to you, what are the three possible reasons that suggest why ‘Capital is required in
business’?
Business enterprises require capital for the following reasons
(i) For financing fixed capital requirements i.e., purchase of land, building, plant and machinery, etc.
(ii) For financing working capital requirements i.e., purchase of raw material, payment of wages/salaries, for meeting certain expenditures, etc.
(iii) For growth and expansion of business enterprise.