A. Having a strict budget that is upheld displays discipline and commitment to the desired goal. This is not something that would necessarily cause a budget to fail. A budget with rigidity may in fact, have a stronger chance to succeed than one that has more slack in it.

B. Simply not having historical data would not necessarily cause a budget to fail. Even first year companies can generate meaningful budgets without historical information as a starting point.

C. Top down budgets, while not necessarily the best approach, can be successful – especially in smaller organizations.

D. One of the primary reasons to budget is to have everyone working in the same direction. If a budget is not endorsed by senior management, employees will make no effort to meet the budget targets, and the budget will become a meaningless exercise.