Company a Uses a Heavily Participative Budgeting Approach Whereas at Company

question 14

Multiple Choice

Company A uses a heavily participative budgeting approach whereas at Company B, top management develops all budgets and imposes them on lower-level personnel. Which of the following statements is false?

• A) A's employees will likely be more motivated to achieve budgetary goals than the employees of Company B.
• B) B's employees may be somewhat disenchanted because although they will be evaluated against a budget, they really had little say in budget development.
• C)Budget padding will likely be a greater problem at Company B.
• D) Budget preparation time will likely be longer at Company B.
• E) Ethical issues are more likely to arise at Company A, especially when the budget is used as a basis for performance appraisal.

---

Definitions:

Methylbutan-1-ol

A primary alcohol derived from butane by replacing one hydrogen atom with a hydroxyl group at the first carbon.

2-Methylbutanal

A type of aldehyde with a five-carbon chain where the second carbon atom from the end is substituted with a methyl group.

1-Hexyne

An alkyne hydrocarbon with the chemical formula C6H10, characterized by a triple bond between the first and second carbon atoms.

2-Hexanone

An organic compound, a ketone, with the formula C6H12O, known for its use as a solvent in various industrial applications.