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A survey of contractors corporate-planning and financial budgeting
journal contributionposted on 20.11.2014, 14:53 by Ammar P.F. Kaka, Andrew Price
The authors found that contracting‐only firms were more vunerable in cases of inaccurate budgets; fluctuations in working capital could lead to the bankruptcy of a contractor who could not raise loans quickly. Two reasons were identified as the cause of inaccurate budgets: forecasting on an overall basis and the inability to take into account accurately variations in strategies and the environment.
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