Why is record keeping necessary for an entrepreneur?
Answer and explanation
Correct answer: To assess income, expenses, and decisions accurately
Accurate records show sales, expenses, cash movements, stock, and other business facts. They help the entrepreneur measure performance, control costs, prepare budgets, meet compliance needs, and make informed decisions. Hiding mistakes or confusing customers is not the purpose of records, and good records strengthen rather than eliminate planning; A is correct.
Frequently asked questions
What is the correct answer to this question?
To assess income, expenses, and decisions accurately
Why is this the correct answer?
Accurate records show sales, expenses, cash movements, stock, and other business facts. They help the entrepreneur measure performance, control costs, prepare budgets, meet compliance needs, and make informed decisions. Hiding mistakes or confusing customers is not the purpose of records, and good records strengthen rather than eliminate planning; A is correct.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
