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What is a better way to reduce financial risk?

Answer and explanation

Correct answer: Preparing a budget and controlling expenses

A budget estimates expected income and expenses, sets priorities, and provides a basis for monitoring actual spending. Expense control can prevent waste and help identify a shortage of funds early. Unplanned borrowing, concentrating all capital in one activity, and stopping records increase uncertainty and financial exposure rather than reducing it.

Related tags

Financial RiskBudgetExpense ControlBusiness RiskBusinessTrade And CommerceBusiness Trade And CommerceBusiness StudiesClass 11 Mcq

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