1. Which of the following is a characteristic of budgets?

   a.They are key components of recording a financial history.

   b.They are created once during the life of the business.

   c.They reflect on financial plans of the past.

   d.They are identifiers of objectives and the actions needed to achieve them.

2. Which of the following is NOT a reason for decentralization?

   a.focusing of central management

   b.allows all decisions to be made at the top

   c.ease of gathering and using local information

   d.exposing segments to market forces