--%>
Assignment Help - homework help

How societys interests can affect financial managers

Describe how society's interests can affect financial managers.

Sometimes the interests of any business firm's owners are not the similar as the interests of society. For example, the cost of correctly disposing of toxic waste can be so high which companies may be tempted to merely dump their waste in close to rivers. In so doing, the companies can keep profits high and costs low, and drive their stock prices higher (if they are not caught). Though, several people suffer from the polluted environment. This is why we have environmental and other alike laws:  therefore that society's best interests take precedence over the interests of specific company owners.

While businesses take a long-term view, the interests of the owners and society frequently (but not always) coincide. While companies encourage recycling, sponsor programs for disadvantaged young people, run media campaigns promoting the responsible employ of alcohol, and contribute money to valuable civic causes, the goodwill produced as a result of these activities causes long-term increases in the firm's sales & cash flows, which translate in additional wealth for the firm's owners.

 

   Related Questions in Finance Basics

  • Q : Define the term Unappropriated Surplus

    Define the term Unappropriated Surplus: It is an outdated term for that part of the fund balance not reserved for particular purposes.

    		•
  • Q : Describe Schedule 7A Schedule 7A : The

    Schedule 7A: The summary version of the State Controller’s Office detailed Schedule 8 position register for each department. The information replicated in this schedule is the base for the “Salaries and Wages Supplement” exhibited on

    		•
  • Q : Which ratios would banker is most

    Which ratios would banker is most interested while considering whether to approve an application for short-term business loan? Describe.Bankers and other lenders employ liquidity ratios to distinguish whether to extend short-term credit to a fir

    		•
  • Q : Are there security and soundness

    Are there security & soundness implications of mergers?No. All mergers needs regulatory approval and are subject to intense examination through regulators. If anything, the influence on safety and soundness is in general positive, as mergers

    		•
  • Q : Disadvantages of the Finger print

    Disadvantages of the Finger print technique: Health concerns while touching the sensor which is being touched by many number of individuals. Sometimes due to age and occupation may cause some diff

    		•
  • Q : Describe the sales forecasting procedure

    Describe the sales forecasting procedure.This is a group effort. Usually sales and marketing personnel provide assessments of demand and the competition. Usually, production personnel provide estimates of manufacturing capacity and other product

    		•
  • Q : What is Appropriation Without Regard To

    What is Appropriation Without Regard To Fiscal Year (AWRTFY): The appropriation for a particular amount that is obtainable from year to year until completely expended.

    		•
  • Q : Resolving ranking conflict Describe how

    Describe how to resolve a "ranking conflict" among the net present value and the internal rate of return. Why should the conflict be resolved as you described? Whenever there is a ranking conflict among net present value and internal rate of re

    		•
  • Q : Cyclically adjusted budget Normal 0

    Normal 0 false false

  • Q : Marketing of hardware stores Normal 0

    Normal 0 false false

    		•