SpandoCorp Is a Diversified Firm That Makes Industrial, Military and Consumer

question 16

Multiple Choice

SpandoCorp is a diversified firm that makes industrial, military and consumer products from Spandex. SpandoCorp manages each of the businesses that it operates in as a separate division and treats each as a True profit-and-loss center. In this organization, Grace McKenna is responsible for deciding which set of businesses SpandoCorp will operate in and for encouraging behavior that is consistent with this strategy, Wells Tucker provides information to McKenna about the internal and external environments that she uses in her decision making, and Kelly Rae is one of the individuals who is responsible for evaluating the firm's decision making to ensure that it is consistent with the interests of equity holders.
-If SpandoCorp decides to use the method of allocating capital where each project receives funding on its merit and not because it received funding the previous year, it is using

• A) zero-based budgeting.
• B) corporate budgeting.
• C) centralized budgeting
• D) coordinated budgeting.

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Definitions:

Distinct Term(s)

Refers to terms in a logical argument or proposition that are recognizably different from each other.

Middle Term

In a syllogism, the term that appears in both premises but not in the conclusion, serving as the link between the major and minor premise.

Syllogism

A form of reasoning in which a conclusion is drawn from two given or assumed propositions, each of which shares a common or middle term.

Premises

Statements or propositions from which a conclusion is logically derived in an argument.