1. What was the biggest surprise for you in the reading? In other words, what did you read that stood out the most as different from your expectations?
What surprised me the most from this reading is how much I don't know about finance. All this jargon made my head spin a little and to be honest, I had to read slower than I am used to. Nonetheless, this knowledge will be useful as the organization I work for (Hopping 4 a Cure) is currently trying to figure out the necessary budget needed to run all the planned activities.
2. Identify at least one part of the reading that was confusing to you.
What I found confusing about the reading was the fixed cost assumptions. How much of a role do "variables" play in this model?
3. If you were able to ask two questions to the author, what would you ask? Why?
If I am starting out a company, chances are that my operating budget will underestimate the total costs. This typically happens when one decides to open a restaurant. My first question is: what methods are there to better forecast my expenses, especially when I haven't made sales yet?
My second question is: Do the financial formulas take into account external variables. For instance, what if the company faces an unexpected lawsuit or disaster. Will it have the budget to deal with such crisis?
4. Was there anything you think the author was wrong about? Where do you disagree with what she or he said? How?
It is difficult with me to disagree on a topic I know very little about. Reading one chapter that really is just a vague summary on a complex topic does not give me enough information to be able to raise questions. As a result, I do not disagree with the author at the moment.
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