The Number and Type of Intervals in the Cash Budget

question 69

True/False

The number and type of intervals in the cash budget depend on the nature of the business. The more seasonal and uncertain a firm's cash flows, the greater the number of intervals and the shorter time intervals.

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Definitions:

Closely Held

A closely held company is one whose shares are held by a small group of individuals or entities, often involving family ownership or a small group of investors.

Major Shareholders

Individuals or entities that own a significant proportion of a company's shares, giving them substantial influence.

Fiduciary Duty

A legal obligation of one party to act in the best interest of another when entrusted with particular responsibilities, typically involving financial management or care.

Corporate Veil

A legal concept that separates the personality of a corporation from the personalities of its shareholders, protecting them from being personally liable for the company's debts or obligations.