Why is record keeping important in business?
Answer and explanation
Correct answer: To keep information of income, expenses, and sales
Records provide an organized account of sales, purchases, income, expenses, stock, and payments. By reviewing them, an entrepreneur can measure performance, prepare budgets, control costs, and make informed decisions. Therefore option A is correct. Forgetting information or hiding goods has no sound management purpose.
Frequently asked questions
What is the correct answer to this question?
To keep information of income, expenses, and sales
Why is this the correct answer?
Records provide an organized account of sales, purchases, income, expenses, stock, and payments. By reviewing them, an entrepreneur can measure performance, prepare budgets, control costs, and make informed decisions. Therefore option A is correct. Forgetting information or hiding goods has no sound management purpose.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
