Which of the Following Outcomes Is Sometimes Associated with Participative

question 68

Multiple Choice

Which of the following outcomes is sometimes associated with participative budgeting?

• A)Employees make little effort to achieve budgetary goals.
• B)Budget preparation time is never lengthy.
• C)The problem of budget padding can never arise.
• D)Financial modeling becomes much more difficult to undertake.
• E)Budget preparation time can be somewhat lengthy and budget padding may arise.

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Definitions:

Dividend Distribution

The payment of a portion of a company's earnings to its shareholders, usually in the form of cash or additional stock.

Signaling Effect

The notion that actions by a company can provide signals to investors and the market about its future prospects.

Excess Cash

Funds that exceed the normal operational needs of a business, which may be invested or used for additional expenditures.

One-Time Payment

A payment that is made in a single installment rather than divided into multiple payments.