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Basing a Communications Budget on Sales from the Previous Year

question 186

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Basing a communications budget on sales from the previous year or anticipated sales for the next year is the which type of budgeting method?


Definitions:

Dividend Growth Model

The dividend growth model is a valuation method used to estimate the price of a company's stock based on the assumption that dividends will increase at a steady rate indefinitely.

Rate of Growth

The percentage growth in the magnitude or worth of an item during a particular timeframe.

Required Rate of Return

The lowest annual yield necessary to draw individuals or firms towards investing in a specific venture or financial proposition.

Cumulative Voting

A voting system that allows shareholders to allocate all their votes to one candidate or distribute them among several candidates when electing directors.

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