DECA Sports and Entertainment Marketing Practice Exam

Which term describes the financial planning method that provides a detailed projection of financial performance?

1. Budget

2. Business Cycle

3. Business Plan

4. Capital

The correct answer is: Budget

The correct term that describes the financial planning method providing a detailed projection of financial performance is budget. A budget is a systematic plan that outlines expected income and expenditures over a specific period. This planning tool allows organizations to allocate resources effectively, set financial goals, and monitor performance against those goals. A budget serves multiple purposes, such as forecasting revenue and expenses, controlling costs, and evaluating overall financial health. By breaking down financial expectations into specific categories, a budget helps in making informed decisions and necessary adjustments as circumstances change. While a business plan contains broader strategies and objectives for the overall business, including market analysis and operational plans, it does not focus solely on financial projections. The concept of the business cycle refers to the recurring pattern of economic expansion and contraction, which influences business performance but is not a direct method of financial planning. Capital typically refers to financial assets or resources that businesses use for their operations and to generate revenue, but it does not specifically address detailed projections of financial performance.