Answer & Mark Scheme

Budgets are financial plans showing expected costs and revenues over a period of time

By introducing budgets Dave can compare the performance of different shops

The budgets will help him identify shops that are struggling

The budgets may lead to competition between shops

Some shops may struggle due to other factors – e.g. location

The managers of the shops may lack expertise in budgeting therefore these may fail if they are not trained

Incorrect allocations may occur.

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