Question description

 

Discussion Question 1 - It’s budget time in your organization. You are examining all manner of data to determine how much of a budget you should request for the coming fiscal year. You have examined your current level of spending, the objectives set out in your department for the coming fiscal year, the external environment, productivity rates, and so on. In doing so, you have determined that in order to achieve your objectives you will need a budget of $3.1 million. At the same time, the finance staff has conducted a budget analysis. They believe you will need a budget of $3.3 million. Today, you must submit your budget request. Do you submit a request for $3.1 million, the amount you actually and thoughtfully have determined is what you really need? Or, do you submit a budget request for $3.3 million knowing that that will give you extra resources and make your life a whole lot easier during the budget year? Keep in mind, if you submit a request for $3.3 million, finance will likely approve it because they developed the number and agree with it. And if you submit a request for $3.1 million, finance will likely approve that as well because it “saved” them money. What do you do? How will you decide which number to request?

Discussion Question 2 - You and a business partner are forming a durable medical device startup company. Your partner is extremely passionate about the endeavor and wants to move quickly. She believes a budget for volume, revenue, expenses and cash is unnecessary, and that there is insufficient information for one to begin with. She feels puting in the time to prepare a budget will delay things considerably. Knowing what you do about budgeting what would you tell your partner? Would you agree to proceed without a budget? Try to convince her that such a plan really is necessary? And if so, what arguments might you offer to convince her?

 

I need you to answer these 2 discussion use finance language .