To effectively run a business, it is necessary to:

• A. Ignore legal and regulatory requirements.
• B. Maintain accurate financial records and monitor performance regularly.
• C. Focus solely on short-term profits without planning for the future.
• D. Avoid delegating tasks to employees.

Answer: (B)

Verified step by step guidance

1. Understand the importance of maintaining accurate financial records: Accurate financial records are essential for tracking the financial health of a business, ensuring compliance with legal and regulatory requirements, and making informed decisions.
2. Recognize the need to monitor performance regularly: Regular performance monitoring helps identify trends, areas for improvement, and ensures the business is on track to meet its goals.
3. Avoid focusing solely on short-term profits: While short-term profits are important, planning for the future ensures long-term sustainability and growth of the business.
4. Acknowledge the importance of delegation: Delegating tasks to employees allows for efficient use of resources, fosters teamwork, and enables leaders to focus on strategic decision-making.
5. Ensure compliance with legal and regulatory requirements: Adhering to laws and regulations protects the business from penalties and builds trust with stakeholders.