Why is record keeping necessary in business?
Answer and explanation
Correct answer: To track transactions, expenses, sales, and profit
Business records provide organized evidence of sales, purchases, receipts, payments, expenses, and other transactions. By reviewing them, the owner can measure performance, control costs, prepare plans, and make informed decisions. Option A is correct. Forgetting information or hiding customers is not the purpose of records, and record keeping does not mean removing employees.
Frequently asked questions
What is the correct answer to this question?
To track transactions, expenses, sales, and profit
Why is this the correct answer?
Business records provide organized evidence of sales, purchases, receipts, payments, expenses, and other transactions. By reviewing them, the owner can measure performance, control costs, prepare plans, and make informed decisions. Option A is correct. Forgetting information or hiding customers is not the purpose of records, and record keeping does not mean removing employees.
Which subject and chapter does this question cover?
This is a Class 11 Business Studies question. Chapter: MSME and Business Entrepreneurship. Topic: Entrepreneurship Development.
