Question

Why is greater emphasis often placed on the financial impacts of events?

1.Because organisations often face strict budget constraints, and because they are easily measured
2.Because they are the most important and most easily measured
3.Because organisations often face strict budget constraints, and financials are often fungible
4.Because organisations often face strict budget constraints, and because of the Global Financial Crisis

Answer 1

Financial impacts of events are emphasized because financial results are concrete and measurable within strict budget constraints, essential for maintaining fiscal responsibility and preventing economic crises.

Step-by-step explanation:

Greater emphasis is often placed on the financial impacts of events because organizations typically operate within strict budget constraints and the financial results are tangible and easily measured. These considerations become especially critical in an interconnected global economy, where a financial setback can have far-reaching effects on both national and global markets. Fiscal responsibility is vital for sustainability and preventing crises such as budget deficits or trade imbalances, which can restrict private sector financial capital and escalate into global financial challenges.

To ensure personal and economic success, individuals and entities need to make sound and purposeful decisions, which often involve creating and adhering to a budget to manage monthly expenses. The market, constrained by a combination of legal regulations and public sentiment, influences decision-making, prioritizing short-term financial gains or savings.