Alberto and Marko Have Just Purchased a Small Soap Manufacturing

question 2

Essay

Alberto and Marko have just purchased a small soap manufacturing company that was having financial difficulties.After a brief operating period,they decided that the company's main problem was the lack of any financial planning.The company made a good product and market potential was great.
Required:
Explain why a company needs a good budgeting plan.Specifically address the need for a master budget.

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Definitions:

Stakeholder Rewards

Benefits, monetary or otherwise, given to stakeholders of an organization, including employees, customers, and investors, as recognition for their contribution.

Discovering Consumer Needs

The process of identifying and understanding what customers want and require from products or services.

Sales Department

A division within a business that is responsible for selling products or services to customers and generating revenue.

Central Location

A strategic or convenient place for conducting business, usually selected for its accessibility to customers or as a distribution hub.