Which of the Following Is a Disadvantage of Participative Budgeting

question 9

Multiple Choice

Which of the following is a disadvantage of participative budgeting?

• A)It is a time-consuming process.
• B)Managers may pad the budget.
• C)Both it is a time-consuming process and managers may pad the budget.
• D)Neither that it is a time-consuming process nor that managers may pad the budget.

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Definitions:

Certificate of Indebtedness

A type of financial instrument indicating the holder is owed a debt by the issuer, typically with terms specifying the repayment of the principal and interest.

Bonds

Debt securities issued by entities such as governments or corporations to raise capital, promising to repay the principal along with interest at a future date.

Private Saving

The portion of households' income that is not consumed or paid in taxes, and is instead saved.

Investment

The action of allocating resources, usually money, with the expectation of generating an income or profit, often through the purchase of assets that are expected to increase in value.