Which One of the Following Is an External Factor That

question 21

Multiple Choice

Which one of the following is an external factor that would need to be considered in forming an initial budget proposal?

• A)Changes in product design.
• B)Introduction of a new product.
• C)Changes in product mix.
• D)Competitors' actions.
• E)Adoption of a new manufacturing process.

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Definitions:

British Pound

The currency of the United Kingdom, often symbolized as £ and known officially as the pound sterling.

Economic Boom

A period of significant economic growth, expansion, and prosperity.

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.

Purchasing Power Parity Theory

An economic theory that states that exchange rates between currencies are in equilibrium when their purchasing power is the same in each of the two countries.