Most Companies Use ________ When Developing the Budgets Each Year

question 51

Multiple Choice

Most companies use ________ when developing the budgets each year.

• A)a top-down approach
• B)zero-based budgets
• C)slack-based budgets
• D)participative budgeting

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Definitions:

Partnership

A legal form of business operation between two or more individuals who share management and profits.

Limited Liability

A legal structure that limits the financial responsibility of owners or shareholders to their investment in a company, protecting personal assets from business debts.

Carrying on Business

The act of engaging in commercial activities with a degree of continuity and organization, aiming at producing income or profit.

Sole Proprietorship

A business owned and operated by one person, where there is no legal distinction between the owner and the business.