Future Business Leaders of America (FBLA) Agribusiness Practice Test

What is a whole business budget?

1. A summary of all liabilities

2. A forecast of next year's sales

3. Full income statements for all business segments

4. Annual profit calculations

The correct answer is: Full income statements for all business segments

A whole business budget is a comprehensive financial plan that encompasses the entirety of a business's operations. This means it includes projected revenues and expenses associated with all business segments rather than focusing on isolated parts of the organization. By providing full income statements for all segments, this budget allows management to understand how different areas contribute to the overall financial health of the business. It enables better resource allocation, performance evaluation, and strategic planning. The other options, while related to financial management, do not capture the full scope of a whole business budget. A summary of all liabilities focuses only on the debts and obligations of the business. A forecast of next year's sales looks solely at revenue projections without considering expenses or overall profitability. Annual profit calculations provide a snapshot of profitability but do not encompass the planning aspects of a budget or take into account the various income streams and expense categories that a whole business budget would include.