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Question(s) / Instruction(s):

Which one of the following is one of the factors that must be present, if budgets are to be effective?

a)            All upper level managers should verify the validity of the amounts in the budget.

b)            Research and analysis should occur in order to set realistic goals.

c)            The company must have the stockholders’ approval of the budget.

d)            The budget committee must prepare the budget.

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