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Anit [1.1K]
1 year ago
10

If the cash budget showed a projected cash shortage, the company would most likely

Business
1 answer:
nydimaria [60]1 year ago
8 0

If the cash budget showed a projected cash shortage, the company would most likely c. arrange to borrow the necessary cash for that period.

In the field of business, companies face situations where there is a shortage in revenue. This may happen due to a new strategy implementation or due to a new project being launched due to which cash shortage in the company.

When a company faces a situation where there is a cash shortage, the company then takes a loan or borrows some money for that time being. Usually, if the money that is to be borrowed is in a large amount, then a contract is to be made, and signatures are taken from both parties.

When a cash budget is short, the company has no option but to borrow money in order to keep the process going.

To learn more about budget, click here:

brainly.com/question/8647699

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yaroslaw [1]

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b) The budget provides managers with a benchmark against which to compare actual results for performance evaluation.

c) The planning required to develop the budget helps managers foresee and avoid potential problems before they occur.

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Option D. All of the above.

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The reason is that when budgets are set every personnel in the organization is given a task along with the restriction on the use of excessive resources of the company by generating a standard number of output, which is benefitial to the company and the managers as well.

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