ECONOMICS (CBSE/UGC NET)

ECONOMICS

BUDGETING

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Which of the following is NOT a reason for budgeting?

A	Provides company or personal financial stability
B	Generates a map of financial practices
C	Guides efficient business decisions
D	Allows companies to spend as much money as they want

Explanation:

Detailed explanation-1: -The correct answer is option D. Preventing net operating losses is not a part of budgeting.

Detailed explanation-2: -Detailed Solution. The correct answer is Reserved. A budget is an estimation of revenue and expenses over a specified future period of time and is usually compiled and re-evaluated on a periodic basis. Budget is a microeconomic concept that shows the trade-off made when one good is exchanged for another.

Detailed explanation-3: -It Can Help Set and Report on Internal Goals Budgeting for an upcoming period isn’t just about allocating spend; it’s also about determining how much revenue is needed to reach company goals. You can use budgeting to set company-wide and team financial goals that align with them.

Detailed explanation-4: -Helps You Work Toward Long-Term Goals. Can Keep You from Overspending. Can Make Retirement Saving Easier. Helps You Prepare for Emergencies. Can Reveal Spending Habits. The Bottom Line.

There is 1 question to complete.