Which of the Following Are Justifications for Running a Budget

question 27

Multiple Choice

Which of the following are justifications for running a budget deficit?

• A)stabilizing the economy during a recession
• B)future generations will benefit from some current expenditures
• C)both a and b
• D)neither a nor b

Understand the concept of organizational culture and its components.

Identify factors that influence employee performance and how they are evaluated.

Recognize the importance and methods of employee selection and performance evaluation.

Understand the role of leadership styles and theories in organizational behavior.

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds; this can include payments on loans, bonds, or lines of credit.

WACC

Weighted Average Cost of Capital; a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.

Book Value

The net value of a company's assets minus its liabilities, often used to assess a company's financial health.

Capital

Financial assets or the financial value of assets, such as cash, used by a company to fuel its business operations.