factors affecting decision making

Question 1

what are the factors that affect decision making

Answer 1

levels of risk and uncertainty
reward for managers
opportunity costs

Question 2

how does level of risk affect decision making

Answer 2

risk associated with some decisions is much higher than others, so the business has to decide how much risk it is willing to accept

Question 3

how does reward for managers affect decision making

Answer 3

managers must consider level of reward likely to be achieved and decide whether this level of reward is worth the risk associated with the decision

Question 4

how does opportunity costs affect decision making

Answer 4

managers must consider the impact of this decision on the alternative projects they could’ve chosen instead

Question 5

what business objectives must be considered when making decisions

Answer 5

business missions
business objectives
ethical positions
external environments
resources

Question 6

why must business missions be considered when making business decisions

Answer 6

the decision must support the overall mission of the business

Question 7

how do business objectives affect business decisions

Answer 7

decisions made must support business objectives otherwise the decision will not be in the business’s best interest.

Question 8

how do ethical positions affect business decisions

Answer 8

all decisions must comply with the ethical position of the business, especially is this position is a USP for customers

Question 9

what areas of the external environment must be considered when decisions are being made

Answer 9

political
environmental
social
technological
legal
ethical
competition

Question 10

how do resources impact business decisions

Answer 10

a business must consider the availability of its resources