Ask a question to Desklib · AI bot

Ask NowBETA

Non-Financial Factors in Capital Investment Decisions and the Role of Top-Level Management

4 Pages515 Words351 Views
   

Added on  2019-09-22

About This Document

This article discusses the non-financial factors that are considered in capital investment decisions, such as the reputation of the firm, environmental issues, and employee morale. It also explains that top-level management, such as the CEO, CFO, and COO, are responsible for making these critical decisions due to the long-term impact on the company's performance and growth. The article highlights the various tangible and intangible factors that need to be considered before making a capital investment decision.
BookmarkShareRelated Documents
Running head- Managerial AccountingMANAGERIALACCOUNTING
Non-Financial Factors in Capital Investment Decisions and the Role of Top-Level Management_1
1Managerial AccountingAnswer 1.Some non-financial factors that are considered more important than they were considered in the past 20-25 years ago in capital investment decisions are as follows:The reputation of the firm – now the main thing depend is on the reputation that is the reputation of the firm now a day become vital and central to capital investment decision (Graham et al., 2015). Capital investments that could enhance the firm’s reputation are preferred over other projects.Environmental issues – the huge impact of capital investment decision is found on the environment. So it is also considered as an important non-financial factor in making a capital investment decision. As nowadays only economy and environment-friendly capital investment project are demanded.Morale of employees – The decision to accept or reject a capital investment project also depends upon the effects of the decision over employees' morale. That is whether the employees' want to be associated with such project or not.Answer2.Mainly all the capital investment decisions are taken by the top level management like the CEO, CFO and COO levels of executives. As capital investment decision have a long-term impact on the company performance and growth, and it is not simple to take a decision, and neither is it taken by the operational manager.
Non-Financial Factors in Capital Investment Decisions and the Role of Top-Level Management_2

Found this document preview useful?

Related Documents
Financial Analysis Management Report
|5
|690
|19

Financial Decision Making | Assignment Sample
|4
|605
|45

Statistical Analysis of Stock Prices for Three Selected Construction Companies
|21
|4452
|48

See discussions, stats, and author profiles for this publication
|15
|6971
|3

Impact of Taxation Laws and Denying Contracts on Corporate Governance Practices
|27
|11105
|52

Risk Management Models Questions 2022
|6
|587
|18