Explain one reason why the head of each division of Buy it Direct is responsible for managing its own budget.
- Edexcel - A-Level Business - Question 2 - 2022 - Paper 2
Question 2
Explain one reason why the head of each division of Buy it Direct is responsible for managing its own budget.
Worked Solution & Example Answer:Explain one reason why the head of each division of Buy it Direct is responsible for managing its own budget.
- Edexcel - A-Level Business - Question 2 - 2022 - Paper 2
Step 1
Knowledge: Define a budget
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Answer
A budget is a financial plan of income and expenditure. It helps organizations, like Buy it Direct, allocate resources efficiently and set financial goals.
Step 2
Application: Structure of Buy it Direct
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Answer
Buy it Direct is divided into various divisions, such as computers, electrical appliances, and furniture. Each division has its own specific needs and objectives.
Step 3
Analysis: Importance of managing budgets
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Answer
Each head of division manages their own budget to motivate performance, as they are trusted to set targets according to their division's needs. This autonomy also allows for better monitoring and adjustment of financial performance.
