Investment Decision-Making (AQA A-Level Business): Flashcards

Non-numerical elements influencing investment worthiness

Investments must align with company objectives and strategy

Reputation protection may matter more than immediate ROI

May cause rejection despite good financial returns

All methods rely on predictions; never completely accurate

Exchange rates, sales, tastes, competitors, raw materials

Vary by firm: risk-takers seek rewards, others play safe

Tests assumptions in decisions via what-if scenarios

Scenario created from assumptions about future events

Specific conditions required before investment approval