One of the four factors that motivate managers to manage reported earnings is meeting external expectations. Which external stakeholders have an interest in a company's financial performance, and why?
Employees are interested in the long-term success of a company so that they may depend on long and stable employment and count on the company delivering on its pension commitments.
Customers are interested in a company's financial performance because they expect the company to make good on its warranty commitments.
Suppliers are interested in the consistently good financial performance of a company because they want assurance of payment and more importantly, that the company remains a reliable purchaser of the supplier's products.
Current and potential stockholders base their buy, sell, or hold decisions on a company's financial performance.
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When the economic consequences to an organization of failure versus success on the job are great, testing has:
A) less utility. B) greater utility. C) no utility. D) generalizability.
An employment interview is
A) an unstructured dialogue with a representative from a potential employer. B) an easy way for you to learn about the company's operations and markets. C) a formal meeting during which you and the interviewer ask questions and exchange information. D) a session in which the interviewer talks and you listen. E) a well-rehearsed exchange of information between peers.