Budgets Are Said to Be Useful in Promoting Forward Thinking

question 40

Multiple Choice

Budgets are said to be useful in promoting forward thinking and identification of short-term problems, because:

• A) management can react to problem areas as they occur.
• B) potential problem areas can be identified early enough to allow management to explore ways of overcoming the problem.
• C) management can foresee future promotion opportunities.
• D) all of the above.

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Definitions:

Political Freedom

The degree to which individuals are able to participate in the political life of their society without repression.

Evade Taxation

The illegal practice of avoiding the payment of taxes owed by using deceitful or unlawful means.

Competitive Pressures

Forces or factors in the external environment that compel organizations to adapt, innovate, and continually improve to maintain or enhance their market position.

Operations Expenses

Operations expenses refer to the costs associated with the day-to-day activities of maintaining a business, including manufacturing, marketing, and administrative expenses.