Tuesday, 24 January 2012

10 Big q

The BIG question: Many businesses like to carry some debt and think in the long run it will make them more money. Why do you think this might be?


14 comments:

  1. They may do this, because they may look at it, thinking that if they used the money to invest in something rather than paying off the debt they may be able to make more success from it, then they can pay off the debt from the money they have made.
    Rick Taylor

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  2. because when they get a loan they can spend that money on things that will help the business and so the better the business is the more profit they will make and when you get a loan you get into debt.

    Sam Edwards

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  3. Businesses like to carry debt because it gets them more interest. If they have the money to pay the debt off but use that money to invest into something which makes them more money, then they still will be able to pay the debt off but they will make profit ontop of the debt which they payed off.
    Andy Lee:)

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  4. Because if they stay in debt it means your not paying for it out of your revinue and so it seems like you've made more money.
    Matt Young

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  5. They could meaure that as the investment that thety put into the business. As a result if they have a large investment in it they could be able to make the money back aswell as make a profit due to the investment in the business.

    Yauza xxx

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  6. this might be because they have limeted liability so it will get written off after awile
    peter

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  7. because they might think that if they invest in something rather than paying the debt off then they will make more money from it so then they can pay off the debt.
    Sofia Budha

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  8. The money can be used as backup money incase something happens. if everything goes well then that money can be used for things towards the business

    - Josh Taylor

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  9. They could meaure that as the investment that thety put into the business. As a result if they have a large investment in it they could be able to make the money back aswell as make a profit due to the investment in the business.
    Yauza xxx iloveyou

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  10. They get more money because if the business that they need to pay goes bust, then they get that money instead of having to still pay it off. They can then invest it in something else.

    By
    Brandon :)
    Christian (:

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  11. the business may decide that they can make profit which in turn can be spent on things like promotion and market research, once this is done the companies profits will raise which means they can pay off the debt quicker than before.

    Connor Wilson

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  12. Because they believe that the money that they could spend repaying the debt could create more profit through using it to finance their business and therefore pay out more.

    Adam Walker

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  13. They could meaure that as the investment that thety put into the business. As a result if they have a large investment in it they could be able to make the money back aswell as make a profit due to the investment in the business.
    Yauza xxx iloveyou

    ReplyDelete
  14. they will invest in something then earn more money so they can pay it back and have left over mony to spend
    zak smeeth

    ReplyDelete