Question

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?

Answer 1

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