CALVINDOL
VIP Contributor
In as much as money comes into a business organisation it is totally possible for money to leave the business organisation. Money leaves a particular business organisation in so Many ways in which we are going to consider briefly, however it can totally be interesting for us to know why this is so. A business spends money in order to acquire assets or properties that could be used in the profit making process or in the goal and objective achieving purpose. Below are some transactions performed by business on which money is leaves the business.
* Rents: majority of businesses operate in locations and spaces that will not built by the business owners, and so in other to keep carrying out business is in this spaces or buildings they need to pay some specified amount of money to the real owners of the building or spaces in which they used to carry out business activities and practices. This amount of money is known as rent or rental payments, and the collectors of this money are either the government or private landlords.
* Repairs and maintenance: carrying out repairs and maintenance in a business organisation is definitely very important. In a situation where a business uses machines and equipment to carry out day-to-day activities, however these machines cannot be used if they are not in the proper and efficient position. Moreover to make sure that these machines and equipment are in the right position and state to be used for business activities, they need to be maintained, and those damaged need to be repaired. Businesses pay reasonable amount of money for machine and equipment maintenance and repairs.
* Salaries and wages: individuals who engage directly in the production, distribution, assembling, interpreting, processing, coding, communicating, calculating, accounting, and finalizing of business outputs need to be compensated or paid for their benevolent and creative attitudes, however this is done by businesses in the form of paying out wages and salaries to employees, workers, or staffs.
* Rents: majority of businesses operate in locations and spaces that will not built by the business owners, and so in other to keep carrying out business is in this spaces or buildings they need to pay some specified amount of money to the real owners of the building or spaces in which they used to carry out business activities and practices. This amount of money is known as rent or rental payments, and the collectors of this money are either the government or private landlords.
* Repairs and maintenance: carrying out repairs and maintenance in a business organisation is definitely very important. In a situation where a business uses machines and equipment to carry out day-to-day activities, however these machines cannot be used if they are not in the proper and efficient position. Moreover to make sure that these machines and equipment are in the right position and state to be used for business activities, they need to be maintained, and those damaged need to be repaired. Businesses pay reasonable amount of money for machine and equipment maintenance and repairs.
* Salaries and wages: individuals who engage directly in the production, distribution, assembling, interpreting, processing, coding, communicating, calculating, accounting, and finalizing of business outputs need to be compensated or paid for their benevolent and creative attitudes, however this is done by businesses in the form of paying out wages and salaries to employees, workers, or staffs.