An entrepreneur adopts the various methods of evaluating the investment while making the decision. These methods can be classified into two major categories: (i) Traditional Investment Approaches. (ii) Modern Investment Approaches. Traditional Investment Approaches: The traditional methods of investment evaluation are based on three main assumptions: (a) The profit making is the only objective of the firm, (b) The investors [...]
Problem of decision making for investment is closely related with the size of firm, and maximisation of profit. What should be the optimum size of the firm is problem with which our present day industry is faced. A.G. Robinson while discussing optimum size of the firm has said that "It is a firm in which existing condition of technique and [...]
Game should be systematic and every game has certain rules. The action of the individual agents is the subject matter of game theory. The decision theory helps one person to arrive at particular decision. The decision theory may help to get the right decision under uncertainty. The general model of action seems to be the heart of game theory. For [...]