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

One decision from my life which involves financial and non-financial factors and which is a decision which many people have to make in their lives is choosing the company which you want to join. While one company might be offering a lucrative package which is substantially more than any other company, however, one needs to consider the non-financial factors also such as location, work culture etc. I have explained in detail as to the financial and non-financial factors which I have considered while choosing the company I want to join :

Financial factors is one of the most important factor which one needs to consider while selecting the company you want to join. A high-paying job offer does not only have the benefit of increased income but it also shows how much the company values a person. Also, ultimately at the end of the day everyone has aspirations which may include buying a bunglow or going for higher studies all of which require enormous amounts of money. One also needs to consider their family situation before making this decision. The level of income of your family also plays a major role as someone from a rich and wealthy family can pay more focus to non-financial factors, however, someone from a low income family has to keep the financial factors at top of their considerations.

Non-financial factors are also very important while making this decision. One can not only look at the amount of money a company is offering, he/she also needs to look at the work culture of the company, the future prospects and growth of the company, duration of promotions and also the exposure a company provides including any opportunity of cross-border exposures.