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In: Accounting

Making decisions often involves financial and nonfinancial factors. Provide a hypothetical example from your personal life...

Making decisions often involves financial and nonfinancial factors. Provide a hypothetical example from your personal life of a situation in which you would consider both financial and nonfinancial factors. What factors would be considered?

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Expert Solution

Consider the following example

A freshly graduate is contemplating a couple of option he has. He has offers from two companies.

First is an established company with history of over 100 years. Second is a startup. A startup that ranks in the top 5 to work for every year since the second year of its inception. It has been in operation for almost 10 years now.

The following FINANCIAL FACTORS would be considered

Old Firm Startup
Salary $ 80,000 per annum $ 90,000 per annum
Incentives More since the firm is experienced and knows what it takes to keep employyes happy Less because the startup is inexperienced and offers more salary
Medical Benefits Huge. One of the best. As per standards
Overtime No overtime benefits Overtime benefits are given
Average Increment 8-12% 20-33%

The following NON-FINANCIAL FACTORS would be considered

Old Firm Startup
Working Days 5 days work week 5 days work week + Alternate Saturday
Travel Time 18 minutes 32 minutes
Job Description Accounting Analytical
Future Certain, established firm Not that certain, just a startup

ekkarill92 answered 6 months ago
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