Which of the Following Organizations Is Not Likely to Use

question 110

Multiple Choice

Which of the following organizations is not likely to use budgets?

• A) Manufacturing firms.
• B) Merchandising firms.
• C) Firms in service industries.
• D) Nonprofit organizations.
• E) None of the answers is correct, because all are likely to use budgets.

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Definitions:

Compounded Semiannually

A method of calculating interest where the interest is added to the principal twice a year, leading to interest earned on interest.

Compounded Annually

This refers to the process of calculating interest on an investment or loan on a yearly basis, where interest from one year is added to the principal for calculation of interest in the next year.

Present Value

The current value of a future sum of money or stream of cash flows, given a specified rate of return.

Compounded Quarterly

The process of calculating interest on both the initial principal and the accumulated interest of previous periods on a quarterly basis.