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Question
What is the primary purpose of creating a budget?
Options
To generate more revenue
To substitute management
To hire new employees
To control expenses and manage finances
MCQ
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Solution
To control expenses and manage finances
Explanation:
A budget forecasts income and planned spending for a future period, enabling management to plan, coordinate activities, allocate resources and control costs. Its main purpose is to limit expenditures and support financial decision‑making.
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