Using probability to make business decisions is an abstract approach that can minimize financial risks for business owners and investors. Probability can also help guide businesses in regard to marketing and employee retention rates, as well as provide more accurate financial goals and long term business plans.
According to AZ Central, almost every business decision is based on probability in one way or another. Combining probability with statistical information allows business owners to make the best decisions possible concerning how independent or dependent economic events will affect their business. Think of probability as a way to knock down obstacles before they are ever reached in the business world.Learn More
Resource planning is the step in writing a business plan that involves identifying the resources that a proposed business needs to succeed. This includes resources that the entrepreneur already has and those that still need to be acquired.Full Answer >
Environmental factors are external factors that can't be controlled by a business, according to the Houston Chronicle. These factors fall into several categories, including socioeconomic, legal or ethical, political and technological factors.Full Answer >
The physical resources of a business include all the tangible resources owned and used by a company such as land, manufacturing equipment and office equipment. Information technology and its attendant equipment, computers, networks, servers and others, are included in the category of physical resources.Full Answer >
The "going concern" principle refers to the treatment of a business entity by auditors, assuming the business will remain operational for the foreseeable future. The auditors use this principle to defer the recognition of expenses to a later date.Full Answer >