In Order for Resources to Be Efficiently Transferred from Less

question 46

Multiple Choice

In order for resources to be efficiently transferred from less productive to more productive uses when weak corporations fail in a capitalist system,it is necessary that:

• A) Governments intervene in these markets.
• B) Bankruptcy laws work well.
• C) Bail out programs are in place.
• D) Governments make the difficult decisions about which industries to support.
• E) All of the above are true.

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Definitions:

Responsibility Accounting

An accounting system that measures the results of each responsibility center and compares those results with some measure of expected or budgeted outcome.

Responsibility Reporting System

The preparation of reports for each level of responsibility in the company’s organization chart.

Static Budget

A fixed budget that does not change or adapt based on any variations in a company's activity levels or performance.

Flexible Budget

A budget that adjusts or varies with changes in volume, activity, or other relevant factors.