Title: Explain the importance of budgets for businesses.
Course: Small Business Marketing (12161) > Section: Describing the Nature of Budgets

Explanation should include the use of budgets to

- track performance
- control costs
- mitigate risk
- reach business goals.

Process/Skill Questions:

- Why is creating and following a budget important for retail operations?
- How does using a budget help a business identify and reduce unnecessary expenses?
- Why is the budgetary process important in the strategic planning process?
- What types of financial information should be included in a budget? Why?
- How can budget preparation assist in decision-making?
- How does the budgetary process affect marketing mix decisions? Product mix decisions?
- What are the potential consequences if a business owner does not prepare a budget?
- What resources are available to help a business owner develop an effective budget?
- What is the benefit of comparing budgets to historical business performance data?