List the four budgeting objectives. Why is this process a loop?
What will be an ideal response
The four budgeting objectives are (1 ) developing strategies, (2 ) planning, (3 ) acting, and (4 ) controlling. This process is a loop because successful companies use current period results to help make decisions regarding the company's future. The control step is not an end but an input into the develop strategies step.
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Jefferson Anderson is a sole proprietor of a successful business. He is interested in incorporating to protect his personal assets. What are some disadvantages of organizing as a corporate entity?
What will be an ideal response?
Sonier Corporation's most recent balance sheet appears below:Comparative Balance Sheet Ending BalanceBeginning BalanceAssets: Cash and cash equivalents$26 $27 Accounts receivable 45 49 Inventory 40 43 Property, plant, and equipment 474 380 Less accumulated depreciation 269 244 Total assets$316 $255 Liabilities and stockholders' equity: Accounts payable$42 $35 Bonds payable 245 270 Common stock 71 70 Retained earnings (42) (120)Total liabilities and stockholders' equity$316 $255 The net income for the year was $97. Cash dividends were $19. The company did not issue any bonds or repurchase any of its common stock during the year. The net cash provided by (used in) financing activities for the year was:
A. $1 B. ($43) C. ($25) D. ($19)
Analytical databases are created for the analysis of one or more specific business subject areas, such as sales, returns, cost, or profit
Indicate whether the statement is true or false
Basu (1977, 1983) found that firms with low P/E ratios
A. earned higher average returns than firms with high P/E ratios. B. earned the same average returns as firms with high P/E ratios. C. earned lower average returns than firms with high P/E ratios. D. had higher dividend yields than firms with high P/E ratios.