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Budgets to Ensure Profits

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1. Without a budget, how do you think this company can ensure they turn a profit?

2. Do you think that budgeting should be used primarily for score keeping, attention directing, or problem solving?

3. With the drawbacks to budgets, and the integrity issues they might create, is it better to not use budgets at all?

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Solution Summary

This solution discussed the importance of a budget as well as the advantages and disadvantages of it within an organizational setting.

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1. Without a budget, how do you think this company can ensure they turn a profit?

A company that does not have a budget is in a position where bankruptcy could occur because of the difficulty of not keeping track of assets on a regular basis. Through this, a person will struggle to know precisely what has come in from all the various customers, who can make it challenging to know for sure what was earned for the organization, or if an individual stole it from them without management knowing what is taking place. Because of their choices, they will struggle to really know what is going on because of the lack of organization to keep track of all revenue that comes in on a regular basis. ...

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