Management and Organizational Studies 1021A/B Chapter 1: Chapter 1
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MOS 1021A/B Full Course Notes
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There are many factors affecting success and failure in business, and they are often a function of decision-making abilities: the choice of location, product, marketing etc. Business decisions have legal consequences: negative consequences. Decision to dump pollutants into environment could result in liability for damage caused: positive consequences. Decision to bind contractural party to promise, could ensure that promises will be kept. Legal consequences very often have a direct effect on profits and losses: liability may be imposed for poor decisions, opportunities can be exploited by good decsions. Forms of risk management: remember: every business decion creates some risk. The challenge is to know how to successfully manage those risks. Risk shifting: make the risk someone elses problem. Buy liability insurance for losses caused by danger. Risk acceptance: choose to live with risk. A contract in which one party agrees, in exchange for a price, to pay a certain amount of money if another party suffers a loss.