The eight parts of prudence and its temporal implications for knowledge
| Parts of prudence and phases | The person of prudence has the capacity to | Entrepreneurial advantages gained through prudence |
|---|---|---|
| 1. Knowledge of the past | ||
| Memoria | Remember past events accurately so that they can learn from experience | The potential value of personal heuristics increases as personal experience and observations feed more accurate information into initial planning for future entrepreneurial actions |
| Intelligentia | Understand “the first basis from which a thing is known” or use common sense | |
| 2. Knowledge of the present | ||
| Docilitas | Be open-minded to recognize the wide variety of situations to be experienced | The establishment of “guidance” routines through which to avoid the over influence of overconfidence on estimations of supply and demand, costs and consumer behaviour |
| Solertia | Be quick-witted where they can size up a situation quickly and identify an appropriate course of action | |
| Ratio | Research and compare various possibilities | |
| 3. Knowledge of conjecture | ||
| Providentia | See the possible consequences of actions and estimate how well a course of action would fulfil a goal | The reduction of overconfidence has the potential to introduce greater caution when speculating future returns and evaluating risks associated future entrepreneurial actions |
| Circumspecto | Take all the circumstances of a particular situation into account | |
| Cautio | Plan to act cautiously in order to mitigate possible risks | |
| Parts of prudence and phases | The person of prudence has the capacity to | Entrepreneurial advantages gained through prudence |
|---|---|---|
| Memoria | Remember past events accurately so that they can learn from experience | The potential value of personal heuristics increases as personal experience and observations feed more accurate information into initial planning for future entrepreneurial actions |
| Intelligentia | Understand “the first basis from which a thing is known” or use common sense | |
| Docilitas | Be open-minded to recognize the wide variety of situations to be experienced | The establishment of “guidance” routines through which to avoid the over influence of overconfidence on estimations of supply and demand, costs and consumer behaviour |
| Solertia | Be quick-witted where they can size up a situation quickly and identify an appropriate course of action | |
| Ratio | Research and compare various possibilities | |
| Providentia | See the possible consequences of actions and estimate how well a course of action would fulfil a goal | The reduction of overconfidence has the potential to introduce greater caution when speculating future returns and evaluating risks associated future entrepreneurial actions |
| Circumspecto | Take all the circumstances of a particular situation into account | |
| Cautio | Plan to act cautiously in order to mitigate possible risks | |