What benefit does an entrepreneur get by recording daily expenses?
Answer and explanation
Correct answer: Money management and decisions improve
Recording daily expenses shows where money is being spent and helps separate necessary costs from avoidable ones. The entrepreneur can prepare a budget, monitor cash use, identify unusual increases, set prices more realistically, and make better financing decisions. Records do not guarantee new customers or remove credit automatically, but they provide essential information for financial discipline and control.
Frequently asked questions
What is the correct answer to this question?
Money management and decisions improve
Why is this the correct answer?
Recording daily expenses shows where money is being spent and helps separate necessary costs from avoidable ones. The entrepreneur can prepare a budget, monitor cash use, identify unusual increases, set prices more realistically, and make better financing decisions. Records do not guarantee new customers or remove credit automatically, but they provide essential information for financial discipline and control.
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.
