What do financial controls ensure within a business?

Financial controls are designed to help a business manage its finances effectively. They ensure that financial resources are used efficiently in the pursuit of the organization's goals. By implementing various financial controls, a business can monitor its financial activities, assess performance against budgets, and make informed decisions that align with its strategic objectives. This structured approach allows for not only oversight of financial operations but also provides a basis for assessing whether the business is on the right track in terms of resource allocation and goal achievement.

In contrast, other choices like maximizing profits or increasing employee productivity, while desirable outcomes, are not the primary focus of financial controls. They are results that may happen as a consequence of effective financial management but are not the fundamental purpose of implementing financial controls. Similarly, reducing market competition is outside the scope of what financial controls directly influence.