If Budgets Are to Be Effective There Must Be

question 204

Multiple Choice

If budgets are to be effective there must be

• A) a history of successful operations.
• B) independent verification of budget goals.
• C) an organizational structure with clearly defined lines of authority and responsibility.
• D) excess plant capacity.

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Definitions:

Boundaries Of Empowerment

The limits or frameworks within which individuals or employees are given autonomy or decision-making power.

Specialized Knowledge

Refers to expertise or skills in a specific area or field, allowing individuals to perform tasks with high efficiency and quality.

Legitimate Power

Authority that arises from a formal position or role within an organization, leading others to comply because it is seen as rightful and accepted.

Strategic Contingency Theory

A theory suggesting that an organization's success is based on its ability to adapt to changes in the environment through strategic decisions.