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BA 366 POACT Exercise
BA 366 POACT Exercise
9 September 2019
Job A
Objective: To develop a rail terminal and ship truck trailers into and out of Texas via rail.
Consequences:
Salary $50-70K, salary Equity role, No equity role, $45,000 for 6-12
and bonus, $60,000 or one commission at months until
profit sharing third of the 8% the position is
profits available
Problem: The oil and gas business has been in a severe recession for eighteen months. Within
Objective: Produce oil leases that might be for sale. If the oil and gas glut dries up before they
get their business launched, he would be an agent or broker and sell oil and gas properties.
Consequences:
Salary $50-70K, salary Equity role, No equity role, $45,000 for 6-12
and bonus, $60,000 or one commission at months until
profit sharing third of the 8% the position is
profits available
Tradeoffs: put up 100k in equity, possibility that the oil and gas glut dries up before business is
Problem: position is unavailable for another 6-12 months, needs to let them know about his
decision in 3 weeks
Objective: Evaluate oil and gas properties for an investment fund for key executives in the firm.
Consequences:
Salary $50-70K, salary Equity role, No equity role, $45,000 for 6-12
and bonus, $60,000 or one commission at months until
profit sharing third of the 8% the position is
profits available
Tradeoffs: have a position not related to his field for 6-12 months, give up the opportunity to
Our team is choosing Job option A. We believe that this job is High Risk - High Reward. He
would have a stable salary in between the range of $50-$70k plus bonuses, and he would also be
included in Profit Sharing. Job A also offers moderate schedule flexibility and offers an Equity
Role. He would also not be waiting 6-12 months for the position to open up like in Job option C,