The overall purpose of budgeting is to plan different phases of business operations, coordinate the activities of different departments of the company and to ensure effective control over it. Managers prepare budgets with the objectives of;

1. allocating the company’s resources to each operation effectively,
2. communicating the objectives and goals to the subordinates,
3. motivating the superiors and subordinates towards the goals,
4. providing coordination among all divisions or employees,
5. comparing the actual and budgeted results, and take corrective actions, if necessary,
6. taking necessary precautions for the possible bottlenecks that the company may face in the following period.

As also understood from the information given, all of the statements in the options related to the objectives of budget are correct, so the correct answer is E.