1. Which of the following is true with regard to the stakes of various stakeholders?

Government is directly linked to the organizations.

Stakeholders can be economically dependent without having ownership.

Local communities do not rely on the corporation for financial well-being.

The value of the organization does not have a direct impact on the wealth of shareholders.

The stakeholders not directly linked to the organization do not have interests in making sure that the organization works in a socially responsible manner.

2. A division manager is given an operating budget of $2.2 million for the coming year and is evaluated on the basis of the amount of output the division can produce based on that budget. This type of budget is called:

A. a revenue budget approach.

B. a cash flow budget approach.

C. an expense budget approach.

D. a profit budget approach.

E. a capital budget approach.