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By appropriately preparing a forecast budget, a company can avoid __________. a net loss inventory shortages insolvency regulation

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Answer:

insolvency

Step-by-step explanation:

A budget is a financial plan used for the estimation of revenue and expenditures of an individual, organization or government for a specified period of time, often one year. Budgets are usually compiled, analyzed and re-evaluated on periodic basis.

The first step of the budgeting process is to prepare a list of each type of income and expense that will be part of the budget.

The benefits of having a budget is that it aids in setting goals, earmarking revenues and resources, measuring outcomes and planning against contingencies.

A specialized budget can be defined as a financial plan that is typically focused on specific assets or activity of a master (comprehensive) budget.

In conclusion, by appropriately preparing a forecast budget, a company can avoid insolvency.

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