An entrepreneur keeps transparent accounts in the business. Which benefit is most important?
Answer and explanation
Correct answer: Both decisions and trust become stronger
Accurate and transparent accounts show income, costs, assets, liabilities, and cash position clearly. This information supports better budgeting, pricing, borrowing, and corrective decisions. Transparency also improves confidence among partners, lenders, employees, customers, and authorities. It does not hide expenses or remove the need for planning and market understanding.
Frequently asked questions
What is the correct answer to this question?
Both decisions and trust become stronger
Why is this the correct answer?
Accurate and transparent accounts show income, costs, assets, liabilities, and cash position clearly. This information supports better budgeting, pricing, borrowing, and corrective decisions. Transparency also improves confidence among partners, lenders, employees, customers, and authorities. It does not hide expenses or remove the need for planning and market understanding.
Which subject and chapter does this question cover?
This is a Class 12 Business Studies question. Chapter: Controlling. Topic: Measurement of actual performance.
