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How does a budget help in business?

Answer and explanation

Correct answer: By planning income and expenses

A budget is a financial plan that estimates expected income and expenses for a period. It helps the business decide how much money can be spent, control unnecessary expenditure, arrange funds, and compare actual results with plans. The other choices do not describe any useful budgeting function.

Related tags

BudgetFinancePlanningConceptNature And Importance Of Business FinanceConcept Nature And Importance Of Business FinanceSources Of Business FinanceBusiness StudiesClass 11 Mcq

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