A. A budget developed by top management and issued to lower level units is unlikely to motivate employees
B. Option 2 is correct, but option 3 won't fix the problem of "slack" that Thomas is concerned about.
C. Option 2 and option 4 will generate a budget and that has employee buy in, but it may not eliminate slack. D. Options 2, 4 and 5 are the best way to eliminate slack through the rounds of changes and the review of historical information. Option 4 will also help generate employee buy in and motivate them to help achieve the overall corporate targets.