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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Carsten gave all his employees low ratings on their performance appraisals. While the employees had met their objectives for the quarter and several had exceeded their sales goals, Carsten felt that everyone could have worked harder than they did. He does not have any evidence that his employees slacked off during the quarter, he just has a feeling that more could have been done. Carsten’s performance appraisals violate the ______ part of the OUCH test.
A. objective B. uniform in application C. consistent in effect D. has job relatedness
Groups are different from teams because:
a. Groups are typically work-related while teams are sports-related. b. Teams are typically larger than groups. c. Teams involve greater interaction and coordination among members to achieve a common goal. d. Teams are more hierarchical than groups. e. Teams have a leader whereas groups do not.
________ is an arrangement for jointly developing a particular new technology.
A. Corporate espionage B. Research partnership C. Acquisition of a technology owner D. Offshoring E. Internal development
____________________ serve as an official written record of the meeting.
Fill in the blank(s) with the appropriate word(s).