Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

What does a company's general operating budget typically outline?

1. Investment strategies

2. Projected income and expenses

3. Tax strategies for growth

4. Personal financial plans

The correct answer is: Projected income and expenses

The general operating budget of a company serves as a crucial tool for financial planning and management. It outlines the projected income and expenses for a specific period, usually on an annual basis. This budget aids in setting financial targets, allocating resources efficiently, and monitoring organizational performance against its financial goals. By detailing expected revenues from operations and anticipating costs associated with various activities, a general operating budget enables businesses to plan for the future, make informed decisions, and ensure that they are operating within their means. This proactive approach helps identify potential shortfalls, optimize spending, and ultimately guide the strategic direction of the business. The other options present different aspects of financial management but do not specifically represent what a general operating budget encompasses. Investment strategies pertain more to how a company chooses to invest its resources rather than daily operations. Tax strategies focus on minimizing tax liabilities and planning for financial growth but are not part of the operating budget. Personal financial plans, on the other hand, deal with individual finances rather than organizational budgeting.