Which of the Following Statements Is True

question 81

Multiple Choice

Which of the following statements is true?

• A) Participative budgeting means that a company's budget should be prepared by lower-level employees.
• B) The attitudes and actions of upper-level management have little impact on the effectiveness of a company's budget.
• C) Employees often find that budgets are constraining and limiting.
• D) In preparing a budget, information flows occur only from the bottom up.

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Definitions:

Required Return

The minimum expected return by investors for investing in a particular asset, taking into account the risk level of the investment.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, widely used in finance to assess the risk of a financial instrument.

Probability Distribution

An analytical function detailing each potential outcome and its probability for a random variable within a set interval.

Variability

The extent to which data points in a dataset differ from each other and from the mean, often used in statistics.