Small companies are an important factor of Croatian economy. The purpose of this paper is to investigate and determine the manner and approach to decision-making in a small company. The first chapter, in the form of a brief introduction, provides an overview of the issues of today's small businesses in the Republic of Croatia. The second chapter describes the definition of management and its level, the role of managers and traits that manager should possess. The third chapter describes and defines the concept of decision-making, it lists well-known types of decision-making and the components of the decision-making process. As a decision – making can be analyzed from various points so this chapter analyzes the decision-making process regarding the issue to be decided upon, who decides, considering how decisions are made and circumstances in which decisions are made. Some of the most common errors occurring at the process of decision-making are stated here as well. Decision models are analyzed from the standpoint of security, uncertainty and risk. Chapter four describes sources of ethics and ethical behavior of the decision maker and analyzes its role according to each source. The fifth chapter gives basic information about the company ABCD p.l.c., the level of management it possesses and how to access the decision-making process at all levels. In -particular we analyze the decision in the case of selecting the best contractor using a method called the Analytical Hierarchy Process (AHP), as one of the methods of multi-criteria decision making.