What might be a consequence of poor budget execution?

The choice highlighting the negative impact on resource management and financial health accurately reflects a significant consequence of poor budget execution. When budget execution is flawed, it leads to inefficiencies such as overspending, underspending, or misallocation of funds. As a result, resources may not be utilized effectively, which can strain the financial stability of an organization or entity.

Furthermore, poor budget execution can hinder the ability to respond to financial challenges, ultimately impacting the organization's overall operational effectiveness. For example, when funds are not adequately managed, it may lead to cash flow problems, making it difficult to sustain necessary programs or services. This degradation in resource management can negatively affect stakeholder trust and confidence, limiting the organization's capacity to achieve its goals.

In contrast, increased community support, higher employee retention rates, and stronger fiscal policy compliance generally arise from effective budget management and execution. These aspects are often the result of responsible financial planning and execution rather than its pitfalls.