Question

Give the meaning of 'objectives' and budget' as types of plans.

Answer 1

• Objectives or the goals of the organization are the ends towards which every activity of the organization is aimed at. Therefore, goals or objectives are the results that the organization tries to achieve. Objectives are considered as a prerequisite for planning. The managers cannot make plans if they have not established the organizational goals first.
  
• Budgets are the monetary or the quantitative expression of the plans and policies that have to be followed by the organization in future. Therefore the term budgeting is used in order to describe the activity of preparing budgets and other procedures related with planning, coordinating and controlling the business of the organization.