Budgeting and financing the organisation This week’s Key Concept Exercise is intended to get you thinking about the use of budgeting in an organisation. There are many different types of budgets. This week, you will consider different budgeting approaches such as flexible, zero-based and rolling budgets in organisations. To prepare for the Key Concept Exercise: • Read the Required Learning Resources for Week 5. • Consider the value of budgeting for an organisation. • Consider the different budgeting approaches. • Consider the behavioural aspects of budgeting. In formulating your Key Concept Exercise, consider the following questions: • Consider different budgeting approaches in an organisation. • Consider how the budgeting approaches may differ among various organisations, such as a Fortune 500 company, a small business or a non-profit. • What are the characteristics of a budgeting system among the various organisations? • What are some of the ethical issues related to budgeting and the successful implementation of a budget? In an approximately 500-word response, address the following issues/questions: ‘I don’t need a budget; I run my own business so it’s all in my head. Bothering with a budget would just be a waste of time and money!’ Do you agree or disagree with this point of view? Discuss the value of budgeting for organisations of all sizes and types in terms of effective resource management. Explain what characteristics of a budgeting system are most likely to contribute towards its successful implementation and how a lack of these might result in ethical problems. To complete this Key Concept Exercise: • Be sure to read over your Key Concept Exercise before submitting it to your Instructor. Make sure the spelling and grammar are correct and the language, citing and referencing you use when providing your opinion are appropriate for academic writing.