Discuss Briefly the Steps in the Decision-Making Process

question 79

Essay

Discuss briefly the steps in the decision-making process.

Apply financial analysis techniques to make informed decisions.

Differentiate between liquidity ratios, such as the current ratio and quick ratio, and understand their importance.

Analyze sales performance and operational efficiency using turnover ratios and growth percentages.

Understand key financial metrics and their calculations related to working capital management.

---

Definitions:

Organisational Goals

Objectives that a company or an organization aims to achieve, which guide its internal decision-making processes.

Control Operations

Activities or procedures implemented to monitor and regulate processes and ensure they meet performance standards.

External Users

Individuals or entities outside of an organization who have an interest in the organization's financial information, such as investors and creditors.

Investment Decisions

Choices made by individuals or enterprises regarding where, when, and how much to invest in order to achieve financial goals or maximize returns.