4/20/2023 0 Comments Managerial and economix decision![]() With this, the importance of risk management grows, including all processes and all kinds of risks concerning their relationships. Therefore, it is necessary to prevent these risks or minimize their impact (Badsi et al., 2017 Agrawal & Sharma, 2014). External decision-makers narrow financial information, and they only work with the information the company gives them, which in most circumstances is not all the information the company maintains.Įvery enterprise must, as part of its business activities, face specific risks that may lead to a reduction in the value of the organization. If granted access to this information, they can make decisions for an organization in terms of marketing, sales campaigns, accounting, financial information, production, what to produce, and who to hire (Badsi et al., 2017 Agrawal & Sharma, 2014). They have access to most, or all of, the accounting information generated by a company, and this accounting information can be used to make decisions on behalf of a company. They decide whether to invest in a company, sell to or purchase from a company, and lend money to a company. Internal decision-makers are individuals inside a company who make choices on behalf of the company, whereas external decision-makers are outside organizations that make decisions that affect the corporation (Galli, 2018 Galli 2017c).Įxternal decision-makers make choices about a company. Economic decision-makers are either internal or external. Anyone using accounting data to make economic decisions must understand the business and economic environment, in which accounting information is generated, and they must also be willing to apply the necessary time and energy to make sense of accounting statements. Frequently, the data is in the form of financial reports. All economic decisions of any consequence require the use of some accounting data. ![]() Selecting an appropriate alternative means that there may be many relevant alternatives and inappropriate options are to be assessed and rejected.Įconomic decision-making refers to the process of making business choices that involve money. Identifying alternative fields of action means that an ideal solution may not exist or might not be recognizable ![]() This definition presents two essential parts: Decision-making is the process of recognizing alternative courses of action and selecting appropriate alternatives in each decision condition (Galli, 2018).
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