Why must business managers and entrepreneurs keep financial ...

[tiffannnnyyyyyy]

Why must business managers and entrepreneurs keep financial records?
 
  What will be an ideal response?

Question 2

Describe what managers must do when planning a business.
 
  What will be an ideal response?

[carojassy25]

Answer to Question 1

Financial records are invaluable tools to the entrepreneur and manager. Good financial management
will allow the manager to maintain control of the business venture and to increase profits or reduce
losses. Financial records can reveal which items are selling and which are not. These records can also
show the extent of success of each person on the sales force. Financial records should indicate the
amount of inventory on hand and how much has been sold. How much profit is made and the total
value of the venture can be computed at any time using appropriate financial records.

Answer to Question 2

When managers make plans, they set objectives or goals. They establish policy for the business, and
they recommend strategies to achieve the goals. They develop procedures, methods, and/or programs
to support policies and implement strategies leading to achievement of goals. Plans must be constantly
reviewed and updated. No matter how thorough the plans, they do not guarantee success. In planning,
managers must make short-term and long-term plans. Short-term plans are accomplished in several
days or weeks. Long-term plans are accomplished over several months or years.