Question

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?

Solutions

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 1 week ago
Next > < Previous

Related Solutions

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?
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?
Provide a real-world example from your personal life that demonstrate the concepts of absolute advantage and...
Provide a real-world example from your personal life that demonstrate the concepts of absolute advantage and comparative advantage.
In your own words, what is consideration? Provide an example (real life or hypothetical, but not...
In your own words, what is consideration? Provide an example (real life or hypothetical, but not a published online case) of adequate consideration OR lack of consideration. Explain the circumstances surrounding your example - e.g. what did each person say, etc. Then explain how the facts you detail constitute adequate consideration or lack of consideration. For example: My two year-old is precariously holding his Winnie the Pooh cup (with no lid) filled with milk. He's standing on the carpet with...
Discuss the application of the five-step framework for making ethical decisions in your personal or professional life.
Discuss the application of the five-step framework for making ethical decisions in your personal or professional life.
Cost-volume-profit analysis can also be used in making personal financial decisions. For example, the purchase of...
Cost-volume-profit analysis can also be used in making personal financial decisions. For example, the purchase of a new car is one of your biggest personal expenditures. It is important that you carefully analyze your options. Suppose that you are considering the purchase of a hybrid vehicle. Let's assume the following facts: The hybrid will initially cost an additional $4,500 above the cost of a traditional vehicle. The hybrid will get 40 miles per gallon of gas, and the traditional car...
Sometimes management will use nonfinancial information when making decisions. Identify some qualitative factors which can be...
Sometimes management will use nonfinancial information when making decisions. Identify some qualitative factors which can be used when making managerial decisions. Do you believe using these factors are beneficial to a company?
Making business decisions involves choosing between alternative courses of action. Many factors affect business decisions, yet...
Making business decisions involves choosing between alternative courses of action. Many factors affect business decisions, yet analysis typically focuses on finding the alternative that offers the highest return on investment or the greatest reduction in costs. Some decisions are based on little more than an intuitive understanding of the situation because available information is too limited to allow a more systematic analysis. In other cases, intangible factors such as convenience, prestige, and environmental considerations are more important than strictly quantitative...
Give an analysis of the financial and nonfinancial factors that influence foreign currency risk. In your...
Give an analysis of the financial and nonfinancial factors that influence foreign currency risk. In your analysis, do the following: Compare purchase power parity and interest rate parity. Differentiate between the use of home currency and foreign currency approaches. Discuss the effect of global political uncertainty on exchange rate risk.
1. Explain the term opportunity cost. Select two decisions, one from your personal life and one...
1. Explain the term opportunity cost. Select two decisions, one from your personal life and one a common decision that manufacturers face, and provide specific examples of relevant opportunity costs. 2. In a decision about whether to accept or reject a special order, explain why it is important to know whether this a one-off decision.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT