Why is record keeping important for an entrepreneur?
Answer and explanation
Correct answer: To understand income, expenses, and transactions
Records provide an organised account of sales, purchases, income, expenses, debts, and cash movements. This information helps an entrepreneur monitor performance, prepare budgets, detect errors, meet obligations, and make informed decisions. Hiding information or keeping no records weakens control, so option A is the only sound reason.
Frequently asked questions
What is the correct answer to this question?
To understand income, expenses, and transactions
Why is this the correct answer?
Records provide an organised account of sales, purchases, income, expenses, debts, and cash movements. This information helps an entrepreneur monitor performance, prepare budgets, detect errors, meet obligations, and make informed decisions. Hiding information or keeping no records weakens control, so option A is the only sound reason.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
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