2.4 - Making Financial Decisions

Question 1

What types of data may be used by businesses when making decisions?

Answer 1

Financial data - cash flow forecasts
Marketing data - primary and secondary market research
Market data - knowing market share of different businesses, cost of suppliers and prices and competitor products

Question 2

What are limitations to financial data?

Answer 2

May not be possible to directly compare 2 different sources of data
A firms financial performance may be for different years - many variables affect
Only includes quantitative data and not qualitative - no customer opinions