Small firms with limited capital typically budget using an all-available-funds method.

Question

Quizplus · Accepted Answer

Small firms with limited capital often lack the resources to use more complex budgeting methods, and so they may allocate all their available funds to cover expenses and investments. This approach is also known as zero-based budgeting, in which each budget cycle starts from scratch and funds are allocated based on priorities and needs.

Small Firms with Limited Capital Typically Budget Using an All-Available-Funds