In Terms of Budgeting Processes There Are Two Common Ways

question 4

Multiple Choice

In terms of budgeting processes there are two common ways in which budgets tend to be compiled. Highlight these two methods from the choice of four below:

• A) Continuation budgeting
• B) Zero-based budgeting
• C) Profit orientated budgeting
• D) Profit and Loss Budgeting

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Definitions:

Constant Growth Rate

A steady, unchanging rate at which a company's dividends or earnings are expected to grow over time.

Required Return

Required return is the minimum expected return investors demand as compensation for the risk of investing in a particular security or portfolio.

Straight Voting

A voting system for electing directors where shareholders must vote for each board position individually, allowing majority shareholders to dominate elections.

Cumulative Voting

Cumulative Voting is a voting system that allows shareholders to allocate their votes in a flexible manner among one or more candidates during the election of a company's directors, enhancing minority shareholders' representation.