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The video tutorial provides an overview of reserves, explaining their importance and role in various contexts. It highlights key aspects of reserves and their impact on decision-making processes.

What is the primary purpose of reserves in a financial context?

• To increase company profits

• To provide a safety net for future uncertainties

• To reduce tax liabilities

• To enhance employee benefits

Which of the following is a type of reserve commonly used by companies?

• Sales reserve

• Capital reserve

• Marketing reserve

• Employee reserve

How do reserves benefit a company during economic downturns?

• By providing funds for expansion

• By increasing sales

• By ensuring liquidity and stability

• By reducing operational costs

What is a key takeaway about reserves from the video?

• Reserves help in managing financial risks

• Reserves are used to pay off debts

• Reserves are a form of investment

• Reserves are only necessary for large corporations

Why is it important for companies to maintain adequate reserves?

• To ensure long-term sustainability

• To increase market share

• To avoid paying taxes

• To impress shareholders