Constitutive decision
In business administration , constitutive decisions are decisions that deal with fundamental questions when setting up a company as well as fundamental decisions in the course of a company's life.
At the beginning of business activity
Basic decisions in this case are, for example, the legal form of the company, the choice of the company's location , the establishment of an organizational structure, mergers with other companies and the choice of business area . These decisions have long-term effects and can usually only be revised at a high cost.
During business activity
Even during the business activity of a company, constitutive decisions can be necessary, especially if structural deficiencies or business processes or requirements make this necessary. The latter could be, for example, the establishment of branches, a change of legal form or a merger with other companies , but also a decision about a possible liquidation of the company.
Individual evidence
- ^ Franz Xaver Bea / Erwin Dichtl / Marcell Schweitzer, General Business Administration: Volume 1: Basic questions , 6th edition, 1994, p. 410 f.