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.
Frequently asked questions
What is the correct answer to this question?
By planning income and expenses
Why is this the correct answer?
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.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: Sources of Business Finance. Topic: Concept, nature and importance of business finance.
