Decision-making takes place against a background of uncertainty about the future course of events. Consequently, in making decisions known costs are compared with expected pay-offs in the future. Decision trees provide a logical process for decision-making. The decision problem can be set out in the form of a diagram, like a tree on its side. It can take into account the occasions when chance will determine the outcome. Chance can be estimated by assigning probability. …showed first 75 words of 731 total…

…showed last 75 words of 731 total…is wholly valid. Evaluation Small firms run by one-person benefit from clear, speedy decision making. The entrepreneur knows the customers, knows the competition and the staff. Therefore he or she can make effective decisions quickly, with no need to justify them to others. Some may prove faulty, but the quick responses of a small firm should ensure damage is limited. The small business will stand or fall on the hunches and judgements of the boss.