Assets are what a business owns, so machinery, premises or raw materials. Without assets a business cannot meet demand as it cannot produce a product without machinery or raw materials. Without a ppremisesthere is no where for a business to produce a product either. Assets can also be sold when inflation decreases so a profit can be made.
Large non-depreciating assets such as land can also be used as collatoral for loans if they are owned. This gives a company access to additional cash or leverage if needed.
