Question

Laurent is starting his own game development business. What is a benefit to separating his personal finances and his business finances?

potential qualification for business loans
accounting is more difficult
game development budget impacts his personal budget
account balance in the business account will stay low

Answer 1

[AI-generated answer — Bot GPT 3.5]

One benefit to separating his personal finances and his business finances is that it can help Laurent keep track of his cash flow and financial performance more effectively. By having separate accounts, he can easily track his business expenses, revenues, and profits without mixing them up with his personal expenses. This can also help him in preparing accurate financial statements for tax purposes and potential investors. Additionally, separating his finances can also provide more protection in case of legal issues or bankruptcy within his business, as his personal assets may be shielded from any liabilities of the business.