Short term
there are internal and external sources of financing. internal sources are things like selling assets such as computers and machinery other internal sources are retained profit and your own personal money. external sources are things like loans, grants and overdrafts.
short term is financial asset used to run business at the market level whereas longterm is to invest to get maximum profit.
long term cost is which is incurred toacquire an asset and that figure is capitalise in Balance Sheet, while short term cost is paid for running and operational expenses, which is shown in Profit n Loss Account.
People in business do need to make a profit, or their business will fail, but profit is not everything. Profit made by illegal means can result in going to jail, for example. Profit made by socially destructive means (even if they are legal) harms the society in which you live. Short term profit is not always compatible with long term profit. So, there is a bigger picture.
Profit reserves refer to the portion of a company's retained earnings that are set aside for specific purposes, such as reinvestment in the business, debt repayment, or future expansion. These reserves are not distributed as dividends to shareholders but are retained to strengthen the company's financial position and support long-term growth strategies. By maintaining profit reserves, a company can ensure it has the necessary funds to navigate economic uncertainties and capitalize on investment opportunities.
long term mostly but in some short term
it can be long term....it can be short term depends if it is RAM is short term..while ROM is long term....
These are companies that typically go for the short-term win (profit) and do not consider the consequences this has on long-term survivability. Thus, they lack little or no social responsibility.
short term
Short-Term
Retained profit, or retained earnings, provides a company with internal funding for reinvestment, allowing it to finance growth initiatives, research and development, or capital expenditures without incurring debt. It enhances financial stability, as it reduces reliance on external financing and can improve creditworthiness. Additionally, retained profits can be used to cushion against economic downturns, ensuring the company can maintain operations during challenging times. Lastly, it reflects a commitment to long-term growth, which can positively influence investor confidence and stock prices.