Which Is True of Budgets

question 158

Multiple Choice

Which is true of budgets?

• A) They are voted on and approved by stockholders.
• B) They are used in the planning but not in the control process.
• C) There is a standard form and structure for budgets.
• D) They are used in performance evaluation.

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Definitions:

Free Enterprise System

An economic system where private businesses operate in competition, largely free of state control, with limited government intervention.

Market System

An economic system in which decisions regarding investment, production, and distribution are guided by the price signals created by the forces of supply and demand.

Property Rights

Legal rights to possess, use, and dispose of assets including real property (land and buildings) and intellectual property.

Public Policy

Government actions, laws, and regulations that reflect the attitudes and rules for the public implemented by different levels of government.