1
Q
define decision trees
A
diagram that represents business decisions - maps out possible options to a business
2
Q
what are 3 positives
A
-visual representation
-forces managers to quantify the impact of their decisions
-helps managers logically compare options
3
Q
what are 3 negatives
A
-uses profitability - may be estimated - unreliable
-time lags can occur between drawing tree + executing decision - can impact value
- sudden economic changes may make decision/ time taken to create tree pointless
4
Q
why is the fact it is a visual representation a positive
A
makes managers think about decisions they’re making and possible consequences
business
flashcards
Decks in class (20)
# Cards
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1.4.4 Motivation in theory and practice23
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1.5.6 Moving from entrepreneur to leader7
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2.3.1 Profit29
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2.4.2 Capacity utilisation17
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3.1.1 Corporate objectives7
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2.5.1 Economic influences36
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2.5.2 Legislation11
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2.5.3 The competitive environment4
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3.1.2 Theories of corporate objectives38
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2.4.1 Production, productivity and efficiency32
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2.4.3 Stock control14
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2.4.4 Quality management11
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2.3.2 Liquidity28
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2.3.3 Business failure4
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3.2.2 Investment appraisal21
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3.3.3 Decision trees4
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3.3.4 Critical path analysis5
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3.4.2 Corporate culture21
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3.5.1 Interpretation of financial statements25
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3.4.1 Corporate influences5
