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Capital budgeting and the organization

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Why is a capital budget request always an issue within an organization? How might a manager align those requests with the overall needs of the organization?

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Solution Summary

This solution tackles budgeting within an organization and how to avoid issues related with it. It suggested drafting a yearly general budget plan for each department and aligning all budget requests with those budget.

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Capital budget request will always be an issue because no organization has excess resources or liquid funds (hence, the term 'scarce capital'). One way of solving this problem is to have an annual general ...

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