Explain what role these have on the way the business operates.

Goal- Mission, Vision and Values Due Monday, noon.

The theories and models that are used can have a significant impact on how a business is run by giving it guidance when making important decisions. Models such as IRR or NPV can be used to assess potential returns on any project, while also taking various factors into consideration, such as inflation, time value of the money and risk. It helps to create a systematic decision making process that reduces the chances of bias and errors. These models allow businesses to compare different options, allowing them to choose the best option to maximize shareholder value over time.