What does effective Financial Control help a business avoid?

Effective financial control is critical for any business, as it relates to how well an organization manages its financial resources to ensure stability and profitability. By implementing robust financial control measures, a business can closely monitor its income, expenses, and cash flow. This vigilance enables the organization to identify potential financial problems before they escalate, facilitating timely decisions regarding budgeting, spending, and resource allocation.

When financial control is effective, a business is less likely to face uncertainties about meeting its financial obligations, such as paying suppliers, employees, or debt commitments. This proactive approach helps maintain liquidity, ensuring that the organization can continue to operate smoothly without facing the risk of insolvency or bankruptcy.

While other options may relate to aspects of business operations, they do not directly connect to the core purpose of financial control. For instance, while effective financial management might indirectly influence advertising costs or employee turnover, it primarily serves to keep a business solvent and capable of meeting its financial commitments. Therefore, the correct answer highlights the essential role of financial control in helping a business avoid the inability to pay its obligations, which directly impacts its survival and growth.