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What Is a Budget and How Is It Used by the Owner

question 9

Essay

What is a budget and how is it used by the owner of a new business?


Definitions:

Salary Allowance

A predetermined amount paid to employees, which may be part of their salary package, often for specific purposes or expenses.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenue, indicating the company's profitability.

Capital Balances

The amount of equity owned by investors or owners in a company or fund.

Net Loss

The amount by which total expenses exceed total revenues in a given period, indicating a financial loss for the business.

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