explain the types of business decision
Answers
Answer:there are three types of environment in which decisions are made:
1.)certainity
In this type of decision making environment, there is only one type of event that can take place. It is very difficult to find complete certainty in most of the business decisions. However, in many routine type of decisions, almost complete certainty can be noticed. These decisions, generally, are of very little significance to the success of business.
2.)uncertainity
In the environment of uncertainty, more than one type of event can take place and the decision maker is completely in dark regarding the event that is likely to take place. The decision maker is not in a position, even to assign the probabilities of happening of the events.
Such situations generally arise in cases where happening of the event is determined by external factors. For example, demand for the product, moves of competitors, etc. are the factors that involve uncertainty.
3.)risk
Under the condition of risk, there are more than one possible events that can take place. However, the decision maker has adequate information to assign probability to the happening or non- happening of each possible event. Such information is generally based on the past experience.
Virtually, every decision in a modern business enterprise is based on interplay of a number of factors. New tools of analysis of such decision making situations are being developed. These tools include risk analysis, decision trees and preference theory.
Modern information systems help in using these techniques for decision making under conditions of uncertainty and risk.
Explanation:
Answer:
Types of Decision Making – 4 Types of Decisions that are Usually Taken by Managers in the Organization: Programmed, Non-Programmed, Operational, Strategic and a Few Others. Decision may be classified under various categories based on the scope, importance and the impact.
Hope its Help you