Question

What types of businesses are likely to benefit from strong budgetary control? Support your answers using examples.

Answer 1

Businesses which are bound to benefit from strong budgetary control are as follows -

A. Businesses who are having a large market share will be gaining from strong budgetary control because it will lead to improvement in margin and sales

B. Business who are producing unique products will be gaining from strong budgetary control because it would lead to increase in the potential customer base and increase in the profit margin

C.businesses who are having a large number of competitors are also able to gain from strong budgetary control because it will help them to acquire more of the market share

D. Business who are operating globally and catering to different countries are generally able to gain an optimum advantage from strong budgetary control

E.companies which are cyclical in nature also able to gain a lot because they will be maximizing their profits.