Management and Organizational Studies 1023A/B Lecture Notes - Lecture 4: Opportunity Cost, Decision-Making, The Need

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 1023A/B
• Professor: Barry Hawn

Document Summary

Quit before making an unethical decision: step 1: specify problem & goals, goals vary across individuals, depend on importance attached to money, leisure, risk, fame, effective decisions require that we. Identify and measure costs and benefits: not just about money (in the short term, step 4: make the decision, usually decisions are made to achieve the highest value. Accounting and decision-making: role for accounting, helping decision makers measure the costs and benefits of decision options, two classes of decision makers, outside the firm. Inside the firm: external decision makers (financial accounting, types of decisions, whether to invest in firm, lend money, calculate taxes owed. Key players in organizations: board of directors - provide management oversight, not a part of the business, they are voted in by shareholders. In charge raising and managing the company"s money. Just an example, businesses don"t have to always be like this.