Three Decisions of a Business

16 December 2017 business

There are three main decisions that any business entity must make. These apply whether we are talking about a single enterpreneur or the largest corporations on the planet. Most other business considerations usually fall under one of the three main ones. The purpose of a business entity is to create value for their shareholders and these three decisions determine whether value is created or destroyed. The situation is a little different for non-profit organizations, but not much. Just like for-profit business entities, they face the same optimization problem of how to use their resources as efficiently as possible.