Some important business transactions.

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.
 
Day after day majority of businesses are being established, and this businesses and centres of making profit and also centres of disseminating cash as well. You have really taken your time to mention some of the important and measure business transactions that definitely involve the act of money leaving the business into the society. However businesses can only engage in this kind of activities if only there have made reasonable amount of cash. A business who have not make reasonable amount of cash cannot pay its employees and can possibly not pay it rental charges to either the government or to its respective landlords.

For businesses to make profit and to engage in transactionary activities it most definitely make profit. However another possible major transactions engaged by most businesses are the purchasing of stocks and inventories for sale. A business cannot make sales if it does not have stocks and inventories or possibly if it has exhaust it's present stocks and inventories.
 
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