Question

"In today's world a firm can ignore environment as its peril" . Discuss the statement with the help of examples

Answer 1

Risk and uncertainty are quite inherent in capital budgeting decisions. This is so because investment decisions and capital budgeting are actions of today which bear fruits in future which is unforeseen. Future is uncertain and involves risk. for

Answer 2

In todays environment firms cannot ignore issues related to the environment which is inside their peril.

Every firm engaged in manufacturing or service delivery leaves a footprint. This footprint accumulates and causes harm to the environment.

This leads to global catastrophic events like climate change.

Firms hence cannot ignore this.  

They  have to act in a responsible manner and adopt sustainable means of development.