Corporate Entrepreneurship: How to Create a Thriving Entrepreneurial Spirit Throughout Your Company

Financial Controls

There are three frequently used financial controls: budgetary control, break-even analysis, and ratio analysis.

Budgetary Control

Budgetary control is the process of having results and comparing these with the corresponding budget. It is one of the most commonly used methods of managerial control as it links all three types of organizational control focus—feed forward, concurrent, and feedback control—depending on the point of application. For budgets to be effective, they must be supported by top management with effective communication and employee participation and be based on realistic, reliable numbers. Corporate entrepreneurial organizations adapt a more flexible approach with budget mechanisms to facilitate innovation ...