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Why would a firm choose to use non financial criterial rather than financial to accept a strategic project?

User Manojlds
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Final answer:

A firm may choose to use non-financial criteria rather than financial when making decisions about accepting a strategic project.

Step-by-step explanation:

A firm may choose to use non-financial criteria rather than financial when making decisions about accepting a strategic project. While financial criteria like ROI and profitability are important, non-financial criteria can provide additional insights and considerations that financial metrics may not capture. For example, non-financial criteria such as market potential, alignment with company values and mission, environmental impact, and social responsibility can be important factors in strategic decision-making. These criteria help the firm evaluate the long-term impact of the project beyond just financial returns. In some cases, non-financial criteria may even outweigh financial considerations. For instance, a firm may prioritize projects that have a positive social impact, even if they may not generate significant financial returns in the short term.

User Pietro Biroli
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