How imporatant are assets in the operation of business?

Question

How imporatant are assets in the operation of business?

Answer 1

Assets are EVERYTHING to a business- it shows what they own. Equipment, property, accounts receivable, interesst due- lot of assets out there. Without assets the liability and equity columns would put them in the hole- bankruptcy. Ya gotta have assets!

Answer 2

An asset can be define as capital that are used to generate revenue, so it's very important to have it.

There was a big discussion 5 years ago about "content" when the internet companies starts to run. There were skeptics around whether a company that doesn't have physical assets can really have a value. It turns out the answer is YES. A perceived value is a VALUE (market position, customer loyalty). So, if your question refers to Physical asset, answer is not really. You should also consider PEOPLE as an asset also (like most companies do know). If you do, answer is YES.

Answer 3

Most businesses take from three to five years before they start to make any money, You have to live in the mean time. To advertise you will need seed money. To buy raw product you will need money. All assets fall back to money. I  understand that you go into business to make money not spend money but the nature of the game is it takes money to make money. When you first start a business you do not have a establish credit line with a product provider.  (wholesaler) Even if you do not have a lot of cash but have stocks or bonds for that matte even your house all have a cash value and there by as certainly a asset. Everything in a business is an asset even the guy that sits at home on his computer and trades stock to earn a living has assets, the computer,the house,  . no assets no business.