A Likely Disadvantage of a Top-Down Budgetary Process, as Compared

question 163

Multiple Choice

A likely disadvantage of a top-down budgetary process, as compared to a participatory process, is

• A) Speed
• B) Lower levels of conflict between lower-level managers in the budget-setting process
• C) Lower levels of budgetary slack
• D) Reduced utilization of information possessed by lower-level managers

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Definitions:

Agent-Sponsored Wholesale Franchise System

A franchising model combining agent wholesaling and franchising to expand distribution and reach of products.

Intensive Distribution

A distribution strategy that aims to provide widespread availability of a product by stocking it in as many outlets as possible.

Extensive Distribution

A distribution strategy that places a product in as many outlets as possible.

Distribution Density

The extent to which a product's availability is spread across a geographical area or among a number of retailers.