Budgeting Supports the Planning Process by Encouraging All of the Following

question 104

Multiple Choice

Budgeting supports the planning process by encouraging all of the following activities except:

• A) requiring all organizational units to establish their goals for the upcoming period
• B) increasing the motivation of managers and employees by providing agreed-upon expectations
• C) directing and coordinating operations during the period
• D) improving overall decision making by considering all viewpoints, options, and cost reduction possibilities

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Definitions:

Large-company Stocks

Large-company stocks refer to shares issued by corporations that have a large market capitalization, indicating they are major players within their industry sectors.

Risk Premium

The additional return expected by an investor for taking on a higher level of risk as compared to risk-free investments.

Risky Assets

Investments that carry a high degree of uncertainty with the potential for both high losses and high returns.

Reward

A benefit or return typically received after an investment or as a recognition of achievements or completion of tasks.