This is for AS level Business Studies.
2006-09-25 08:21:25 · 8 answers · asked by Anonymous in Education & Reference ➔ Other - Education
Purely due to the capital is has invested in the start of the company and considering all other factors such as promotion, advertsing etc, which will make the company at a loss before it even starts, so it has to have time to build the capital back up again.
regards
m.green
2006-09-25 08:25:48 · answer #1 · answered by pass_master2000 2 · 2⤊ 0⤋
Because the capital outlay has to be taken into consideration along with initial advertising. Also little work will be completed during the setting up period to offset the outlay.
2006-09-27 19:08:40 · answer #2 · answered by Amanda K 7 · 0⤊ 0⤋
because of start up costs. As the business matures those costs will be absorbed and you will only have yearly overheads. Also obviously it takes time to develop a customer base.
2006-09-25 15:23:32 · answer #3 · answered by Madam Rosmerta 5 · 3⤊ 0⤋
not enough business in the first place because it needs to establish itself first if nobody knows about it or if it is any good.
2006-09-25 15:56:13 · answer #4 · answered by Andrea S 3 · 1⤊ 0⤋
because of the capital (buildings, machines etc....) that incure on the first year
2006-09-25 15:32:27 · answer #5 · answered by dennis s 3 · 2⤊ 0⤋
Start up costs,
2006-09-25 18:04:53 · answer #6 · answered by albert_rossie 4 · 1⤊ 0⤋
because of all the expeneces it takes to get the buisness started
2006-09-25 15:23:15 · answer #7 · answered by Anonymous · 0⤊ 1⤋
Because of failure, my boy!
2006-09-25 15:23:12 · answer #8 · answered by Anonymous · 0⤊ 3⤋