2.docx - ACOBA NATHALIE CLAIRE T 2BSA-1 STRABA-18 JULY 19,2020 Self\u2010Study Questions 1 Since long\u2010run profitability requires that a firm is sensitive

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ACOBA, NATHALIE CLAIRE T. 2BSA-1 STRABA-18 JULY 19,2020 Self Study Questions 1. Since long run profitability requires that a firm is sensitive to the interests of its customers, employees, suppliers, and society at large, whether a firm is run in the interests of its shareholders or its stakeholders makes no real difference. Do you agree? Are there situations where shareholder and stakeholder interests diverge? -No, because they have dissimilar interface based on their relationship with the company or organization. This could lead to strife amid transactions for mergers and acquisitions, as shareholders regularly back the move since of the higher profit they will get. 2. Table 2.1 compares companies according to different profitability measures. 1. Which two of the six performance measures do you think are the most useful indicators of how well a company is being managed? - ROE it indicate the value the firms create with what it possesses different industries have different return.
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