The Authorization Function of Budgets Is Especially Important for Government

question 55

Multiple Choice

The authorization function of budgets is especially important for government and not-for-profit (NFP) entities, where budgeted amounts often serve both as approvals of planned activities (or programs) and as:

• A) Measures of quality.
• B) Indicators of performance.
• C) Certification of actions.
• D) Ceilings for expenditures.
• E) The basis for contract negotiations.

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Definitions:

Closely Held

A description for a corporation or company that has a small number of shareholders, often characterized by its shares not being widely available to the public.

Fiduciary Duty

A legal obligation requiring one party to act solely in another party's interest with a high standard of care, especially in matters concerning trust and confidence.

Office Equipment

Items and machinery used in an office to assist in tasks and operations, such as computers, printers, and furniture.

Profit Made

The revenue remaining after all expenses have been deducted from total sales.