Which of the Following Is True of Budgets When They

question 118

Multiple Choice

Which of the following is true of budgets when they are administered thoughtfully?

• A) They eliminate subjectivity in performance evaluation.
• B) They can eliminate the uncertainty faced by a company.
• C) They promote coordination within the subunits of a company.
• D) They are a substitute the planning and coordination functions of management.

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Definitions:

Contracts

Legal agreements between two or more parties that are enforceable by law.

Performance-based Contracts

Agreements where the compensation or continuation is contingent upon meeting predefined performance criteria or outcomes.

Nonprofit

An organization dedicated to furthering a particular social cause or advocating for a shared point of view, without the aim of generating profit for its owners or organizers.

Power

The ability or capacity to direct or influence the behavior of others or the course of events.