Final answer:
Achieving financial performance is crucial for business growth, sustainability, and the ability to make purposeful financial decisions. Budgeting and goal-setting are key components in managing finances effectively and ensuring economic success.
Step-by-step explanation:
Achieving financial performance is important because it provides the foundation for a business to grow and be sustainable over time. Financial performance relates to how well a company uses its assets to generate revenues and profit. A business that achieves good financial performance can reinvest in itself, attract investors, and maintain a competitive edge.
Moreover, financial performance is connected to making sound and purposeful financial decisions which ensure personal and economic success on both national and global scales. Creating a budget and setting goals are essential practices as they provide a framework for managing finances effectively, avoiding debt, and achieving savings for future needs or investments. By setting a budget, individuals and businesses can plan their spending, monitor cash flow, and make informed financial decisions that align with their long-term goals and objectives.