Survival

• Before a business maximises profits it’s main objective is to simply survive
• Poor cash flow is one of the reasons in why the business struggles to survive
• If the business is able to break even (enough sales revenue to cover all costs) than the business can start concentrating more heavily on objectives other than survival
• Established business may have survival as an objectI’ve due to factors such as the market being competitive or if economic changes which causes the firms cost to increase