The Problem with Incrementalism Is That

question 10

Multiple Choice

The problem with incrementalism is that

• A)activities are not under the control of management.
• B)there is too much uncertainty about future budgets.
• C)it encourages managers to be over-concerned with their salary increases.
• D)activities become institutionalised through the budget and there is a reluctance to ask questions about fundamental purposes.

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Definitions:

Investment

The purchase, construction, or development of resources, including physical assets, such as plants and machinery, and human assets, such as better education. Investment expands an economy’s resources. The process of investment is sometimes called capital formation.

Barter Economy

An economic system where goods and services are exchanged directly for other goods and services without the use of money.

Currency

A system of money in general use in a particular country or economic context, serving as a medium of exchange for goods and services.

Interest

The cost of borrowing money or the payment received for lending money, typically expressed as a percentage of the principal amount per year.