Which of the Following Is an Example of the Planning

question 167

Multiple Choice

Which of the following is an example of the planning function of a budget?

• A) Budget figures are used to evaluate the performance of managers.
• B) The budget outlines a specific course of action for the coming period.
• C) Employees are motivated to achieve the goals set by the budget.
• D) A budget demands integrated input from different business units and functions.

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Definitions:

Indemnify

To reimburse or promise to reimburse another from loss. To act as security or protection against a loss.

Special Agent

An agent that is employed to conduct a single transaction or a small, simple group of transactions.

Authority

In agency law, an agent’s ability to affect his principal’s legal relations with third parties. Also used to refer to an actor’s legal power or ability to do something. In addition, sometimes used to refer to a statute, case, or other legal source that justifies a particular result.

Agency Relationship

A legal relationship in which one party, the agent, is authorized to act on behalf of another, the principal, in business transactions.