A Level Accounting (9706)•9706/13/M/J/18

Explanation
Business planning promotes growth, not staff cuts
Steps:
- Recall core purposes of business planning: strategic direction, resource allocation, and risk management.
- Evaluate each option against these purposes to identify mismatches.
- Eliminate options that align with planning benefits like decision support and funding.
- Confirm the mismatched option as the one not serving positive planning goals.
Why C is correct:
- Business planning, per strategic management definitions, focuses on long-term viability and efficiency through growth, not on identifying redundancies, which is a tactical HR function for cost reduction.
Why the others are wrong:
- A supports informed decisions by outlining goals and forecasts.
- B reduces conflicts via clear roles and objectives.
- D provides evidence of viability to lenders or investors.
Final answer: C
Topic: Budgeting and budgetary control
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