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Why is estimating profit and loss necessary for an entrepreneur?

Answer and explanation

Correct answer: To make sound financial decisions

Estimating profit and loss requires comparing expected revenue with expected costs. It helps an entrepreneur judge whether the idea may be viable, set prices, control spending, plan finance and decide whether to expand or change operations. Option A is correct. The estimate is meant to support informed decisions, not remove customers or encourage careless spending.

Related tags

Profit-LossFinancial-PlanningEntrepreneurshipConceptNature And Importance Of Business FinanceConcept Nature And Importance Of Business FinanceSources Of Business FinanceBusiness StudiesClass 11 Mcq

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