--%>
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 : What is Budget Change Proposal Budget

    Budget Change Proposal (BCP): It is a proposal to modify the level of service or funding sources for activities sanctioned by the Legislature, suggest new program activities not presently authorized, or to remove existing programs.

    Q : Describe inventory is sometimes thought

    Inventory is sometimes thought of as an essential evil. Describe. Inventory ties up funds and these are not earning an explicit return. Some inventory is frequently necessary, however, as companies attempt to hold the lowest acceptable amount.

    		•
  • Q : Summer Co. is expected to pay a

    Summer Co. is expected to pay a dividend or $4.00 per share out of earnings of $7.50 per share. If the required rate of return on the stock is 15% and dividends are growing at a current rate of 10% per year, calculate the present value of the growth opportunity for the stock (PVGO)

    		•
  • Q : Investment based question Normal 0

    Normal 0 false false

    		•
  • Q : How would the market price of a bond be

    All other things held constant, how would the market price of a bond be influenced if coupon interest payments were made semiannually rather than annually?Most of bonds issued in the United States pay interest semiannually (twice per year). Alo

    		•
  • Q : What do you mean by Without Regard To

    What do you mean by Without Regard To Fiscal Year (WRTFY): Where an appropriation has no period of restriction on its accessibility.

    		•
  • Q : Example-implicitly-weighed marginal

    Cite three example of recent decisions which you made in which you, at least implicitly, weighed marginal costs & marginal benefits.

    		•
  • Q : Compare diversifiable and non

    Compare diversifiable and non diversifiable risk. Which do you think is more significant to financial managers within a business firms?Diversifiable risk can be dealt along with by, of course, diversifying. Generally non diversifiable risk is co

    		•
  • Q : Mascot Simulation Simulation with

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

    		•
  • Q : Security in banking operations Security

    Security in banking operations is a major problem in financial institutions all over the world today. The compromise of banking information and data more often than not leads to fraud. Fraud has become quite a challenge for many banks as any slight br

    		•