Which of These Is Not a Limitation of the Traditional

question 44

Multiple Choice

Which of these is not a limitation of the traditional approach to control through budgets?

• A)The difficulty of separating the causes of variances into controllable or uncontrollable factors.
• B)The difficulty of creating clear lines of demarcation between areas of responsibility of various managers.
• C)The expense of preparing a budget is too great for the average business.
• D)None of the above, i.e., all are limitations.

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Definitions:

Installment Loan

is a type of loan that is repaid over time with a set number of scheduled payments, typically monthly.

Outstanding Principal

The remaining amount of money borrowed on a loan or bond that has not yet been repaid.

Equity Capital

Funds raised by a company in exchange for a share of ownership in the company.

Venture Capital

Financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential.