Decisions are made every day by everyone. Decisions like what to eat or what time to go to bed are simple decisions that we make with little or no thought. These types of decisions are not likely to have an ongoing impact on our future. However, the decision to buy a car or a house has a more of an ongoing impact. Investing in bad real estate can lead to a loss, a loss to some can ruin plans and dreams Given that these decisions play a role on our future, they should be thought out and considerations should take place prior to making them.
On the other hand, businesses make different types of decisions too. Some business decisions have little bearing the ongoing business and others can control the future of the business. Many business managers or supervisors make decisions to support the everyday business. These employees are put into place to manage an activity of a business or department. The everyday decisions that these leaders make do not have an impact on the future. A company would not want just any employee making decisions that impact their future.
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Considering that investment decisions can have a huge impact on the company, they should be made by executive management. Executive management positions like the CFO or a CEO of a company are more invested in the company. Further, with their position comes a certain level of expectation that they will drive the company to a positive future and made solid decisions. They are depended on by senior management for guidance on key initiatives, capital investments being on of these (Reeves, 2008). Overall, CFO and CEO’s are expected to be the “voice of reason” for the company. They are expected to make financially sound decisions that complement the company’s road