If Initial Budget Estimates Prove Unacceptable,planners Achieve the MOST Benefit

question 159

Multiple Choice

If initial budget estimates prove unacceptable,planners achieve the MOST benefit from:

• A)deciding not to budget this year.
• B)using last year's budget.
• C)planning again in light of feedback and current conditions.
• D)accepting an unbalanced budget.

---

Definitions:

Retained Earnings

The portion of a company's profits not distributed as dividends to shareholders, instead reserved for reinvestment in the business or to pay off debt.

Large Stock Dividends

Distribution of a greater than typical percentage of shares to shareholders, typically impacting the stock's value and distribution.

Par Value

The face value of a bond or stock as stated by the issuing company, which does not necessarily match its market value.

Stated Value

An arbitrary value assigned to no-par value stock by the board of directors of a company, used for accounting purposes.