Part IV

Anticipating Surprises: Risk and Uncertainty

In this part . . .

Business decisions are made in an uncertain environment. Because of uncertainty, you can’t know future outcomes and profit for sure, so you require techniques for decision-making with unknown or uncertain payoffs. This is especially important when budgeting for capital investments. I also consider how members of a business organization may have different goals and examine the actions managers and owners can take to “get everyone on the same page.” Finally, I consider the government policy’s impact on business.