1. Governments may have a budget surplus, which allows them the flexibility to put money into a(n) ______________ to be used when budget shortfalls occur.

Investment Account

Budget Reserve

Slush Fund

Holding Account

2. A cash flow problem occurs when the amount of revenue available is not sufficient to cover a media expenditure. Barring any unforeseen occurrences, cities do not tend to have a cash flow problem because they know when tax collections are due.

True

False

3. In the Economic Order Quantity Formula: P=b(T/c) + vT +i(c/2), the c stands for:

Predicted revenue

Category of funding

Size of transfer

Taxed income

4. Risk management incorporates all these fundamental elements EXCEPT:

Mission Identification

Vision Implementation

Risk and Uncertainty Assessment

Risk Financing

5. Cutback management is implementing cost-cutting reductions and resources while attempting to maintain services at their current level. Cutbacks are a result from five things problem depression, erosion of the economic base, inflation, taxpayer revolt, and __________________.

Limits to Growth

Financial Allocations

Administrative Change

Sunsetting Programs