Reducing Budget Risk by Using Probabilities
| dc.creator | van Blokland, P.J. | |
| dc.date | 2017-04-01T20:14:13Z | |
| dc.date.accessioned | 2026-07-09T03:46:52Z | |
| dc.description | This paper emphasises the importance of budgeting for a family run firm. It concentrates on the inadequacy of the typical budget forecast that is shown to firm owners and lenders. This original budget is changed to a useful indicator of the firm's future by incorporating risk, using probabilities and a decision tree. Without this incorporation the firm can misallocate its anticipated net income between family salary, firm re-investment and debt reduction. The final budget, adjusted to the individual firm's risk calculations, produces a weighted net income. This number is a more realistic one for allocating salary, investment and principal. | |
| dc.identifier | doi:10.22004/ag.econ.24352 | |
| dc.identifier | https://ageconsearch.umn.edu/record/24352/files/cp03va01.pdf | |
| dc.identifier | http://ageconsearch.umn.edu/record/24352 | |
| dc.identifier.uri | http://hdl.handle.net/123456789/539773 | |
| dc.language | eng | |
| dc.publisher | ||
| dc.source | http://ageconsearch.umn.edu/record/24352 | |
| dc.title | Reducing Budget Risk by Using Probabilities | |
| dc.type | Text |