Which of the Following Is Not a Reason Why Firms

question 26

Multiple Choice

Which of the following is not a reason why firms use budgets?

• A)Performance evaluation.
• B)Coordination.
• C)Planning.
• D)Operating leverage.
• E)All of the above are reasons why firms use budgets.

Calculate and interpret dividend yield, profit margin, total asset turnover, and return on total assets.

Understand the concept and significance of days' sales uncollected and days' sales in inventory within business operations.

Apply formulae to determine various financial ratios such as current ratio, acid-test ratio, and debt to equity ratio from balance sheet data.

Evaluate a company's financial health and performance through common size percentages and trend analysis.

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Definitions:

Direct Control

A management approach where decision-making and oversight are exercised directly over processes, operations, or activities.

Project Management Team

A group of individuals working together to plan, execute, and close project activities to meet objectives and deliverables.

Classification

The act of organizing or grouping entities based on shared characteristics or criteria.

Profiling

The process of collecting and analyzing data about an individual's characteristics, behaviors, or trends.