ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -It helps in operations planning, coordinates organizational activities, and motivates managers to obtain the budget goals. Further, it controls operations as well as gives information to managers for planning and decision-making. Thus, all the given options are correct.

Detailed explanation-2: -A budget helps create financial stability. By tracking expenses and following a plan, a budget makes it easier to pay bills on time, build an emergency fund, and save for major expenses such as a car or home. Overall, a budget puts a person on stronger financial footing for both the day-to-day and the long term.

Detailed explanation-3: -The purpose of budgeting is to provide a financial framework for the decision making process i.e. is the proposed course action something we have planned for or not. In managing a business responsibly, expenditure must be tightly controlled.

Detailed explanation-4: -Creating a budget is an important pillar of your overall success and security. It allows you to oversee and better understand whether your business has enough revenue (incoming money) to pay its expenses. Using a budget can help you make more informed financial decisions.

Detailed explanation-5: -Planning: Budgeting ensures effective planning by setting up of budgets. Coordination: Budgets are helpful in coordination of business activities. Efficiency and Economy: Increase in Profitability: Anticipation of Future Capital Expenditure: Control: Deviations: