Which one of the following is necessary if a company expects its budget to be effective?
A)The company must be operating at less than capacity.
B)The budget period must cover more than one year.
C)The company's organizational structure must be sound.
D)The company must have sufficient cash for operations.

Question

Quizplus · Accepted Answer

While all of the options listed may be important for a company's success, having a sound organizational structure is necessary for a budget to be effective. This includes having clear roles and responsibilities, effective communication channels, and a culture that supports budgetary goals. Without a strong organizational foundation, even a well-planned budget may not translate into successful outcomes.

Which One of the Following Is Necessary If a Company