3.4.1 Corporate influences

Question 1

name some needs + wants of large businesses

Answer 1

reputation
ethical decisions
culture

Question 2

short termism

Answer 2

decisions that will focus on the next few years + will focus on tactics + quick financial gain

Question 3

long termism

Answer 3

decisions that focus on sustainability approach to success, usually over the next 10 years

Question 4

ethical decisions cost influence?

Answer 4

increase costs as trading off short term profit for long term success

Question 5

dividend

Answer 5

pay shareholders a % of the profit from business

Question 6

short termism examples

Answer 6

maximise short term profits
invest less in r + d
return profits to shareholders
external growth strategies

Question 7

long termism examples

Answer 7

invest in training
focus on profit quality (how long p lasts)
positive ethical stance on decision making

Question 8

what are the 2 things businesses can make decisions on?

Answer 8

evidence + experience

Question 9

evidence + eval

Answer 9

data to back up decision
+ factual (reduces risk)
- outdated
- expensive
- time consuming

Question 10

experience

Answer 10

subjective/intuition - not quantifiable
+ no research needed
+ quick responsive decisions
- high risk
- not as reliable as evidence