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If an entrepreneur spends without keeping records, what problem is most likely?

Answer and explanation

Correct answer: Profit and loss cannot be measured correctly

Financial records show the amount and purpose of money received and spent. Without them, the entrepreneur cannot reliably compare revenue with total cost, identify waste, prepare budgets, or know whether the enterprise is making a profit or loss. Unrecorded spending does not reduce expenses, increase customers, or remove risk. Accurate records support informed financial decisions.

Related tags

Record-KeepingFinancial-LiteracyConceptNature And Importance Of Business FinanceConcept Nature And Importance Of Business FinanceSources Of Business FinanceBusiness StudiesClass 11 Mcq

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