Final answer:
The difference between LT and ST time orientation in business is that in the short run firms are limited in changing fixed inputs, while in the long run, they can adjust all factors of production.
Step-by-step explanation:
The distinction between Long Term (LT) and Short Term (ST) time orientation usually revolves around a company's capacity for adjusting to changes. In the short run, a firm is unable to alter the use of fixed inputs—these include aspects of production that cannot be easily changed, such as buildings, machinery, and other capital investments. Meanwhile, in the long run, a business has the flexibility to modify all factors of production, including both fixed and variable resources. This flexibility allows the firm to adapt to new circumstances, pursue scaling in production, and innovate. The time frames for what constitutes short term and long term are not precisely defined and vary depending on the specific business situation.