--%>
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 : Better risk measure in evaluating risk

    Why is the coefficient of variation a better risk measure to employ than the standard deviation while evaluating the risk of capital budgeting projects? The coefficient of variation is a better risk measure than the standard deviation alone sinc

    		•
  • Q : State Section 8.50 Section 8.50 : The

    Section 8.50: The Control Section of Budget Act gives the authority to raise federal funds expenses authority.

    		•
  • Q : Price The Audiology Department at

    The Audiology Department at Randall Clinic offers many services to the clinic’s patients. The three most common , along with cost and utilization data, are as follows: Service Variable cost per service Annual Direct Fixed cost Annual Number of Visits Basic Examination $5. $50,000 3,000 Advanced

    		•
  • Q : Define COBCP COBCP : Capital outlay

    COBCP: Capital outlay budgets are zero-based each and every year, thus, the department should submit a written capital outlay budget modify proposal for each fresh project or following phase of an existing project for which the department needs fundin

    		•
  • Q : Define Sponsor Sponsor : It is an

    Sponsor: It is an individual, group, or organization which initiates or brings to a Legislator's attention a proposed law modification.

    		•
  • Q : Means of weight in the weighted average

    Normal 0 false false

  • Q : Mascot Simulation Simulation with

    Simulation with Crystal Ball Provided Workbook: Mascot Simulation Relevant Readings:"Discounted Cash Flow Modeling" folder + Text

    		•
  • Q : Explain Supplement-Schedule 7A

    Supplement (Schedule 7A): In such documents, for precedent year, authorized positions symbolize the number of real positions filled for that year. For present year, authorized positions comprise all regular ongoing positions accepted in the Budget Act

    		•
  • Q : Describe annuity Normal 0 false false

    Normal 0 false false

  • Q : Supply of automobile tires Normal 0

    Normal 0 false false

    		•