Should management only be concerned with producing returns
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Should management only be concerned with producing returns for their investors or do they need to consider the needs of other stakeholders?
Before the financial crisis I do not think that the loan officers paid close attention to quarterly financials. Currently, it probably depends on what line of business the customer is in. I would assume as long as the quarterly statements are within the loan covenants requirements the loan officer would not be overly concerned. Are the quarterly statements compiled?
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This solution helps with a problem regarding management and producing returns. It also discusses loans and quarterly statements.
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Should management only be concerned with producing returns for their investors or do they need to consider the needs of other stakeholders?
Even though the main objective of management is to maximize shareholder wealth or shareholder returns, it is equally important to consider the needs of other stakeholders as well, such as ...
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- BCom, SGTB Khalsa College, University of Delhi
- MBA, Rochester Institute of Technology
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