When Setting a Flexible Budget It Is Important to Know

question 102

Multiple Choice

When setting a flexible budget it is important to know

• A)the expected profit that a firm requires.
• B)the expected return that the shareholders or owners require.
• C)the relevant ranges of activity and cost.
• D)the impact of inflation on the budget in the year to come.

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Definitions:

Formal Investment

The act of putting money into financial schemes, shares, property, or a commercial venture with the expectation of achieving a profit, typically through an official or regulated framework.

Bootstrapping

Starting a business with minimal financial resources and relying on one's own efforts and funds rather than seeking significant external funding.

Customer Base

The group of customers who repeatedly purchase the goods or services of a business, representing the business's main source of revenue.

Crowdfunding

Securing capital for a project or business by requesting small financial contributions from a large group of individuals, mainly via online channels.