An Approach to Producing a Budget Which Is Based on the Previous

question 22

Multiple Choice

An approach to producing a budget which is based on the previous years budget is called:

• A) Planning, programming budgeting system (PPBS)
• B) Zero-based budgeting (ZBB)
• C) Incremental budget
• D) Performance budget

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Definitions:

Beta

A benchmark for evaluating the volatility or systematic risk of a security or portfolio vis-à-vis the wider market.

Risk-Free Rate

The theoretical rate of return of an investment with zero risk, often represented by the yield on government securities.

Market Portfolio

A theoretical bundle of investments that includes all types of assets available in the market, with each asset weighted by its market capitalization.

Dividend Decline

A situation in which a company reduces the amount of dividends declared and distributed to its shareholders compared to previous periods.