Which of the Following Is More Likely to Lead to Underspending

question 47

Multiple Choice

Which of the following is more likely to lead to underspending or overspending?

• A)Competition-matching approach
• B)Arbitrary approach
• C)Objective-and-task approach
• D)Percent-of-profit approach
• E)Objective-and-sales approach

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Definitions:

Corporate Form

A legal entity structure for businesses that is separate from its owners, offering limited liability and the ability to raise capital through stock.

Sole Proprietorships

A business structure where a single individual owns and operates the business, assuming all liabilities and responsibilities.

Business Organization

A structured entity formed for the purpose of conducting commercial, industrial, or professional activities, with structures ranging from sole proprietorships to corporations.

Triple Bottom Line

A framework or theory that recommends companies commit to focus on social and environmental concerns just as they do on profits, encapsulating three Ps: profit, people, and planet.