The First Step in Budgeting Is to Make a Forecast

question 50

True/False

The first step in budgeting is to make a forecast of your future profits.

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Definitions:

Equity-Financed

Pertains to the method of raising capital by selling company shares rather than borrowing funds.

Earnings Per Share

A company's net profit divided by the number of its shares outstanding, indicating how much money each share of stock earns.

Merger

The combination of two or more companies into a single entity, typically to achieve synergistic benefits, expand market reach, or gain efficiencies.