Define these three terms: 1) balanced budget, 2) profit, 3) loss. ...

[jon_i]

Define these three terms: 1) balanced budget, 2) profit, 3) loss. Explain why it is important for a center to operate under a balanced budget.
 
  What will be an ideal response?

Question 2

Define the term budget and explain why it is important to have a budget in place.
 
  What will be an ideal response?

[AngeliqueG]

Answer to Question 1

ANSWER:
A balanced budget is one where income and expenses must be equal.

When there is a surplus on the income side of the budget, it is categorized as profit. In a for-profit business, the surplus can be put in a reserve fund for large expenses that may occur in future years whereas in a not-for-profit business, funds would be added to appropriate budget categories or put in reserve fund. If budget projects a loss, serious attention must be paid to immediately trimming expenses or increasing funding.

Operating under a budget that is not balanced can lead to bankruptcy, closing the center, and/or serious cuts in the programs quality.

Answer to Question 2

ANSWER:
A budget is a plan or financial forecast usually for a period of one year reducing the possibility of financial catastrophe.

[jon_i]

Thanks for the timely response, appreciate it

[triiciiaa]

TYSM