"All Right, We Have Budget Inputs from All Six Divisions

question 92

Multiple Choice

"All right, we have budget inputs from all six divisions. I have consolidated all of these inputs into a draft spreadsheet, and I have added other corporate budgets into the spreadsheet" said Jeannine Starks, CFO of LemonTree Products, to her fellow executives. "We need to review this 'budget of budgets' and get back to the division manager with our comments. After they incorporate our comments and submit their revised budget inputs, I will consolidate the division budgets and all other budgets into a ________ budget."

• A) master
• B) sales
• C) capital
• D) cost
• E) maintenance

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Definitions:

Quantity Theory

An economic theory that suggests the general price level of goods and services is directly proportional to the amount of money in circulation.

Laissez Faire

An economic philosophy advocating for minimal governmental intervention in the marketplace and the free operation of supply and demand forces.

Say's Law

The principle that supply creates its own demand, meaning production necessarily leads to an equivalent level of demand in the economy.

Monetarists

Monetarists believe in the control of the supply of money as the primary method of controlling inflation and stabilizing the economy.