Managers in Multinational Companies Find Budgeting to Be a Helpful

question 107

Multiple Choice

Managers in multinational companies find budgeting to be a helpful tool in each of the following conditions except:

• A)known fluctuations in currencies.
• B)uncertain expected environments.
• C)familiar political environments.
• D)comparing actual to budgets in volatile conditions.
• E)the comparison of budgets to actual to economic environments.

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Definitions:

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

Net Worth

The total value of all assets owned by an individual or entity minus any liabilities or debts, representing the owner's equity in those assets.

Insider Trading

The illegal or legal trading of a public company's stock or other securities by individuals with access to nonpublic information about the company.

Public Announcement

A statement or declaration made to the general public, often by a company or government entity, regarding important information.