Decision tables provide a compact way to represent complex business logic by listing all possible combinations of conditions and their associated actions or effects. They help ensure all scenarios are considered and can prevent errors and inconsistencies. For example, a decision table could show that an ATM withdrawal is granted if the requested amount is less than or equal to the customer's account balance or if the customer has been granted credit to cover the amount. The table would list the conditions, such as withdrawal amount and available credit, and the resulting action of approving or denying the withdrawal.