When Negotiating a Deal on the Purchase of a New

question 8

Multiple Choice

When negotiating a deal on the purchase of a new automobile,Bradley had manufacturing cost data from his neighbor who worked for the car manufacturer.Bradley got himself a good deal on his purchase due to his ___________ power in the negotiation.

• A)referent
• B)legitimate
• C)information
• D)coercive

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Definitions:

Cash Budget

A budget that estimates the expected receipts (inflows) and payments (outflows) of cash for a period of time.

Capital Expenditures Budget

A plan for a company’s expenditures on large physical assets like property, plant, and equipment that are expected to last more than one year.

Budgeted Balance Sheet

A projection of a company's financial position at a specific future date, showing expected assets, liabilities, and equity.

Operating Budgets

Detailed projections that outline expected income and expenses related to the day-to-day operations of an organization over a specific period.