One Friday afternoon years ago I was sitting in my office as theCEO of a young software company, when my department heads ofsoftware development and finance came in separately to each requestan additional $125,000 in funding. My software development directorwanted new product testing equipment and my CFO wanted to upgradeour accounting and business systems software. Both were legitimaterequests that would help move the business forward. I couldn’t helpbut laugh: In the span of 10 minutes I was being asked to approvetwo unplanned expenses of $125,000, and they were as different asapples and oranges. Framing the Problem This story captures thedilemma faced by CEOs every day and is unique to the job.How do you compare two expenses that have almost norelation to each other?
When you have to decide between two expenses, you choose the onethat you think based upon your experience will generate themost.
True or False and why please:)
