Rather Than Build the Current Year Budget on Increases from the Previous

question 98

Multiple Choice

Rather than build the current year budget on increases from the previous year's budget, ________ evaluates the necessity of every item.

• A)zero-based budgeting
• B)zero-based accounting
• C)ground-up budgeting
• D)year-one budgeting

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Definitions:

Corporate Tax Rates

The rates at which corporations are taxed on their profits by the government.

Capital Structure

The mix of debt and equity financing used by a firm to finance its operations and growth.

Business Risk

The exposure a company or investor has due to uncertainties in the operating environment, including market demand, supply costs, and competition.

Financial Risk

The probability of loss inherent in financial operations, such as changes in market prices, interest rates, or credit quality.