Stakeholders

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

Other proponent also suggests that organizational mystify 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 chemical element in influencing organizational stance. Financial analysis is also a regent(postnominal) mechanism lend oneselfd by Finance Managers to grasp the financial strength and weaknesses of an organization ! and to also measure if the organization is line up to the financial set objectives. One of the most powerful tools to character for this analysis is Ratios. Ratios analysis means the process of; computing, determining, and presenting the relationship of colligate 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 put forward to get a full essay, order it on our website: OrderEssay.net

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