A Budget Is an End Product of Negotiations Among Senior

question 31

Multiple Choice

A budget is an end product of negotiations among senior and subordinate mangers because ________.

• A) budgeting is their mutual responsibility
• B) senior managers alone cannot spare the time required for the budgeting process
• C) senior managers are responsible for providing information on competitors performance and subordinate managers are responsible for information on external market conditions
• D) senior managers want stiffer targets and subordinates want relatively easy targets

---

Definitions:

Initial Margin

The minimum amount of equity that must be provided by an investor as part of the terms of a futures contract or other marginable securities.

Futures Contract

A standardized legal agreement to buy or sell something at a predetermined price at a specified time in the future.

Total Value

The comprehensive worth of an asset or company, considering all sources of value including tangible and intangible factors.

Futures Contract

A standardized legal agreement to buy or sell something at a predetermined future date and price, commonly used for commodities or financial instruments.