Description
Maximizing shareholder returns usually implies that the firm must also satisfy customers, employees, suppliers, creditors and other stakeholders. First, rank stakeholders as to expected risk and return and then rank stakeholders as to their importance to the organization’s success. Explain your ranking differences and/or similarities
Explanation & Answer
Thank you for the opportunity to help you with your question!
Rank Stakeholders as to expected risk and return:
- Stakeholder
- Creditors
- Suppliers
- Customers
- Employees
Maximizing shareholders’ wealth is among the key objectives of corporate governance in various organizations The primary responsibility of attaining the goals of corporate governance is mandated to the management of a given organization The management of the organization is mostly posed of the managers who provide financial stewardship to shareholders’ wealth and the Board of Directors who foresee all the activities of the organization.
Please let me know if you need any clarification. I'm always happy to answer your questions.