Peter has just purchased a small honey manufacturing company that was having financial difficulties. Peter has asked you about the financial difficulties of the company. After a brief operating period, you decided that the companys main problem was the lack of any financial planning. The company made a good product and the market potential was great. (15 marks)

Question a) Briefly explain to Peter why a company needs a good budget plan. Explain at least three benefits of a good budget. (3 marks)