Describe the Differences Between Authoritative Budgeting and Participative Budgeting

question 77

Essay

Describe the differences between authoritative budgeting and participative budgeting. Include advantages of each type of budgeting.

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Definitions:

SBU

Strategic Business Unit; a semi-autonomous segment of a larger business or organization that operates as an independent entity.

BCG Business Portfolio

A matrix developed by the Boston Consulting Group that helps companies analyze their business units or product lines based on market growth rate and market share.

SBUs

Strategic Business Units, which are divisions or units within a company that focus on specific market segments or product lines, operating with their own planning and profit goals.

Growth-Share Matrix

A strategic business tool used to visually assess a company's product portfolio across growth potential and market share dimensions.