Lesson 1 - Problem-Solving & Decision Making

Question 1

What are two advances in modern history that have led to development of Business Analysis?

Answer 1

1. Advanced mathematical techniques used to analyze business situations
2. Digital computer - premier tool for applying mathematical techniques.

Question 2

What in another name for the techniques of business analysis?

Answer 2

Management Science and Operations Research (MS/OR)

Question 3

What is an integral part of business?

Answer 3

Change

Question 4

What is a business problem?

Answer 4

When changing conditions affect business adversely.

Question 5

What is an opportunity?

Answer 5

When changing conditions are helpful/advantageous to us.

Question 6

What is the dual nature of problems and opportunities?

Answer 6

Opportunities often require investment of money/time/efforts which is a cost, however, this investment can lead to increased profit/payoff.

**Need to welcome changing conditions and look for opportunities to improve your business.

Question 7

What is a decision?

Answer 7

It is a choice between alternatives.

Question 8

What are decisions based on?

Answer 8

1. Analysis
2. Preferences and tastes
3. Esthetic reasons

Question 9

What is one method to analyze alternatives?

Answer 9

Experimental trial and error approach. Cons: not efficient and/or effective