1. Which of the following activities can and should proceed in the absence of a budget?

-Worldwide Courier responds to a government plea for help in delivering food and medical supplies to a city that has been devastated by a hurricane. -Synapse Biologic Inc. is only a few months away from completing the research necessary to gain European regulatory approval for their arthritis medication. Resources are strained to the point where creditors are concerned, but Synapse plows ahead. -Rest Easy, a multinational hotel chain, intends to equip all its guest rooms with high-speed Internet access within the next three years. -Atlantic-Pacific Airlines wants to hire more mechanics as it prepares to expand service to South America.

2.As the manager of global sales for Ellipse Pharmaceutical, you have already resolved to increase your Asian sales by 10 percent in the coming year. You are currently reviewing the records of inquiries generated by various forms of advertising. The information gained will be useful in determining your future course of action. This strategy represents what step of the budget planning process?

-Setting goals. -Evaluating and choosing options. -Identifying budget impacts. -Implementation.

3. World Realty intends to increase its condominium sales worldwide over the next three years. As head of finance, you have organized the budgets of each office into a master budget in order to monitor the expansion process. In analyzing this budget, you recommend corrective action in one territory that has an unfavorable variance in the (actual sales/expected sales) category. Which one?

-Asia (50,500 / 48,000). -North America (85,000 / 84,000). -South America (90,000 / 110,000). -Europe (68,000 / 68,000).

4. The annual report of Geomatic Telecommunications is being prepared. How will the company