Which Statement Is Not Correct

question 14

Multiple Choice

Which statement is not correct?

• A) The 'top down' approach to budgeting tends to improve motivation.
• B) Setting demanding, but achievable, targets is a better motivator than setting undemanding targets.
• C) Unrealistic targets have adverse effects on managers' performance.
• D) The existence of budgets tends to provide motivation to improve performance.

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Definitions:

Dividend

A payment made by a corporation to its shareholders, usually as a distribution of profits, which can be issued in various forms such as cash payments or further shares.

Geometric Average Rate

The average rate of return that accounts for compounding over a specified time period.

Stock

A type of investment that represents ownership in a corporation, giving the holder a claim on part of the corporation's assets and profits.

Standard Deviation

A statistical measure that quantifies the variation or dispersion of a set of data points.