Misuse of Budgets Can Lead to Incentives to Cheat and Lie.Cheating

question 45

Multiple Choice

Misuse of budgets can lead to incentives to cheat and lie.Cheating and lying may take the form of ________.

• A) making short-run decisions to increase profits that are not in the company's best long-run interests
• B) budgetary slack
• C) decreasing profits when actual profits significantly exceed the profit target
• D) all of the above

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Definitions:

Excise or Sales Taxes

Taxes imposed on the sale of specific goods and services, often included in the price paid by the consumer.

Tax Revenue

The revenue obtained by governments from taxes.

Economic Factors

Variables such as inflation, interest rates, economic growth, and unemployment that influence the performance of an economy.

Elasticity of Supply

The responsiveness of the quantity supplied of a good to a change in its price.