A Tool That Managers Use to Estimate Major Expenditures for Assets

question 195

Multiple Choice

A tool that managers use to estimate major expenditures for assets, expansion of facilities, and mergers and acquisitions is called a(n)

• A) capital budget.
• B) cash budget.
• C) revenue forecast.
• D) zero budget.
• E) equity budget.

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Definitions:

Efficiency Loss

The loss of economic efficiency in a market, which can occur due to various reasons, such as taxes, subsidies, or monopolies.

Tax Revenue

The income collected by governments through taxation from individuals and businesses.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning that no individual can be effectively excluded from their use, and one person's use does not reduce availability to others.

Regressive

A term often used to describe a tax system where the tax rate decreases as the taxable amount increases, leading to a higher burden on lower-income entities.