Stakeholders

CHAPTER ONE INTRODUCTION 1. INTRODUCTION Financial Statements as overhaul as a official document of fact that provides organizational information on profit, assets, and liabilities of a phoner over years. m whatsoever an(prenominal) organizations have different levels of stakeholders with varying levels of pursuit in the rail or profitability if the organization. According to freeman (1984), a stakeholder is any group or individual who female genitalia consider or is affected by the achievement of organizational objectives. Donaldson (2002), in any case offer an interesting approach towards stakeholder theory that is descriptive and prophetical by explaining that stakeholder management properly administered leads to market success. Stakeholders bed be any of the following groups: & tomentum; Shargonholders & misrepresent; Employees • Creditors • Government • Management • Customers • union e.t.c. With separately of these groups having their common interest, the Financial Statement, hence, serves as a amount gibe for these stakeholders to access if the corporate and their own individual objectives are be met.

Other proponent also suggests that organizational baby buggy is an critical result stemming from the level of stakeholders salience (Clarkson, 1995, 1998). This explains that, for an organization to be successful, it moldiness focus on stakeholders as a cipher in influencing organizational stance. Financial analysis is also a regent(postnominal) mechanism lend oneselfd by Finance Managers to grasp the fina ncial strength and weaknesses of an organiza! tion and to also measure if the organization is line up to the financial set objectives. One of the most powerful tools to give for this analysis is Ratios. Ratios analysis means the process of; computing, determining, and presenting the relationship of link items and groups of items in the financial statements. They provide in a summarized and thick form of fairly good idea about the financial...If you invite to get a full essay, order it on our website: OrderEssay.net

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