Which of the Following Is an Advantage of Participative Budgeting

question 82

Multiple Choice

Which of the following is an advantage of participative budgeting?

• A) It fosters pseudoparticipation.
• B) It encourages budgetary slack.
• C) It tends to discourage goal congruence.
• D) It fosters a sense of responsibility.
• E) There are no advantages of participative budgeting.

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Definitions:

Coordinated Purchase

The act of buying securities or assets in a synchronized manner, often used to achieve a common financial goal or exert market influence.

Portfolio of Stocks

A collection of stocks held by an individual or an institution.

Seasoned Equity Offering

The process by which a publicly-traded company issues additional shares of stock to raise capital, typically after the initial public offering.

Initial Public Offering

The first time that the stock of a private company is offered to the public.