Problem 4 Critics of traditional budgeting often make their points in a colorful way. Consider the following comments by the CEO of a multinational with revenues of over $30 billion and over 200,000 employees. We set "stretch" goals for our people. Stretch means that we try for huge gains while having no idea how to get there -but our people figure out ways to get there. To reach these stretch goals, it takes an atmosphere where a goal doesn't become part of the old fashioned budget. The budget is the bane of corporate America. It never should have existed. A budget is this: If you make it, you generally get a pat on the back and a few bucks. If you miss it, you get a stick in the eye or worse. Making a budget is an exercise in minimization. You're always trying to get the lowest out of people, because everyone is negotiating to get a lower number IfI worked for you, you would come charging into the board room and say, "I need four! We'd haggle all day, me making presentations, with 50 charts, saying the right number is two. In the end we'd settle on three. We'd go home and tell our families that we had a helluva day at the office. And what did we do? We ended up minimizing our activity. We weren't dreaming, reaching. I was trying to get the lowest budget number I could sell you. It's all backward REQUIRED 1. Do you agree the The budget is the bane of corporate America. It never should havie existed."? Explain. 2. Assume you are the CEO of a television station and your marketing manager has shown you the preceding extract and suggested that you "dispense with the annual budget ritual." How would you respond