Effect of budget participation The following statements relate to the participation of junior management in setting budgets:

(1) It speeds up the setting of budgets.

(2) It increases the motivation of junior managers.

(3) It reduces the level of budget padding.

Which of the above statements is/are TRUE?

(a) 1, 2 and 3

(b) 2 and 3 only

(c) 1 only

(d) 2 only