Preparing a Budget Does Not Allow Managers to

question 30

Multiple Choice

Preparing a budget does not allow managers to

• A)eliminate any variances that would have been created without a budget.
• B)help divisions within the organization to communicate with one another.
• C)assess whether a division's strategic direction is in line with corporate strategy.
• D)All of these answer choices are things which preparing a budget allows managers to do.

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Definitions:

Closely Held Corporation

A type of corporation that has a limited number of shareholders and does not offer its shares for sale to the general public, often family-owned or controlled by a small group of investors.

Determination

The process of making a firm decision or settling a matter with conclusiveness.

Business Organization

The structure and legal form under which a business operates, such as a corporation, partnership, or sole proprietorship.

Incorporation

The act of officially recognizing a business entity as distinct from its proprietors, offering limited liability and additional advantages.