A Company's Plan for the Acquisition of Long-Lived Assets, Such

question 21

Multiple Choice

A company's plan for the acquisition of long-lived assets, such as buildings and equipment, is commonly called a:

• A) pro-forma budget.
• B) master budget.
• C) financial budget.
• D) profit plan.
• E) capital budget.

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Definitions:

Retained Earnings

The portion of net income that a company retains instead of distributing to shareholders as dividends, often used for reinvestment in the business or to pay off debt.

Cumulative Voting

A voting system used in corporate elections that allows shareholders to allocate their votes in any preferred proportion among the candidates, enhancing the voting power of minority shareholders.

Votes Cast

The total number of votes made by shareholders or members in an election or decision-making process.

Proxy

Grant of authority by a shareholder allowing for another individual to vote his or her shares.