Money That Is Offered to Finance a New Business Is

question 68

Multiple Choice

Money that is offered to finance a new business is known as:

• A) a general cash offer.
• B) venture capital.
• C) a private placement.
• D) a rights issue.

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Definitions:

Noncontrollable

Refers to expenses or influences that cannot be altered or changed by the management due to external constraints or fixed contract terms.

Flexible Budget

A budget that adjusts or varies with changes in the volume or activity level of a company.

Master Budget

A comprehensive financial planning document that consolidates all of the smaller budgets within a company into one overview, showing the total planned activities for an upcoming period.

Static Budgets

Fixed budgets that do not change in response to variations in business activity levels.