Decision-Making among persons running a small or medium-sized business involves a complicated process. Althoug their decisions have a very broad impact on the entire society, accounting research has only paid little attention to their decision-making process and the factors that effect it. The psycho-social perspective in particular gives us an entirely new understanding and information on the decision-making process. The results obtained in the present paper suggests that the related `human factors´ make up an essential part of the process. Another finding was that the use of the `rationality´concept in the process tends to restrict and hamper our understanding of the process.