Chanda has K500 to start the business. Give two examples of start-up expenses she may need to budget for and explain why budgeting is important.

Here are two examples of start-up expenses Chanda may need to budget for:

1. Raw materials or initial inventory: Depending on the business, Chanda will need to purchase the goods she plans to sell or the materials required to produce her product.
2. Equipment: This could include tools, machinery, or furniture necessary for the business operations.

Budgeting is important because it helps Chanda allocate her limited K500 effectively, ensuring that essential expenses are covered and preventing overspending. It provides a financial roadmap to manage her funds and achieve her business goals.