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Financial decisions significantly influence an organization's performance by affecting its liquidity, profitability, and overall financial health. Strategic choices regarding investments, budgeting, and financing can enhance operational efficiency and drive growth, while poor financial management can lead to cash flow issues and increased risk. Ultimately, sound financial decisions contribute to sustainable competitive advantage and long-term success, while detrimental choices can hinder performance and jeopardize the organization's viability.

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Why are creditors stakeholders?

Creditors are considered stakeholders because they have a financial interest in a company's performance and stability. Their investment or loans depend on the company's ability to generate revenue and repay debts. As stakeholders, creditors are concerned about the company's financial health, which directly impacts their returns and risk levels. Additionally, they may influence business decisions and strategies to ensure their interests are protected.


What are the effects or impacts of leadership in organisation?

Leadership in an organisation is playing a very important roll, leadership like a driver if leader ship is good the organisation will make more profit,good relation among the staff, good working culture and will keep the organisation to compete in the business, and if it bad only God know what to do akg1012003@yahoo.co.in


Why the cost for capital is important in the management?

The cost of capital is crucial in management as it represents the minimum return that investors expect for providing capital to the company. It impacts investment decisions, project evaluations, and overall financial strategy, helping managers determine which projects are worth pursuing. A lower cost of capital can enhance profitability and competitive advantage, while a higher cost may restrict growth opportunities. Ultimately, effectively managing the cost of capital aids in optimizing the company's financial performance and shareholder value.


Who are share holders of a corporation?

Shareholders of a corporation are individuals or entities that own shares or stocks in that corporation, giving them a claim on part of its assets and earnings. They can be private investors, institutional investors, or even other corporations. Shareholders typically have the right to vote on major corporate decisions, such as electing the board of directors and approving significant mergers or acquisitions. Their primary interest is usually in the financial performance of the company, as it directly impacts the value of their shares and potential dividends.


What is the owners in stakeholders?

Owners in stakeholders refer to individuals or groups that hold ownership in a business, such as shareholders in a corporation or sole proprietors in a small business. They have a vested interest in the company's performance and profitability, as their financial investment directly impacts their returns. Owners often influence key decisions, policies, and the overall direction of the organization, making them critical stakeholders in the business ecosystem. Their interests can sometimes conflict with those of other stakeholders, such as employees or customers, creating a dynamic balance of priorities.

Related Questions

How could investors and Shareholders influence and impact on an organisation?

Investors and shareholders can significantly influence an organization through their voting rights on key issues, such as board elections and major strategic decisions. Their financial support is crucial, as it impacts the company’s capital for growth and operations. Additionally, they can shape management decisions by advocating for specific strategies or changes, often through shareholder proposals or activism. Ultimately, their expectations regarding financial performance and corporate governance can drive organizations to align with shareholder interests, impacting overall company direction.


What is a folio balance and how does it impact financial planning and investment strategies?

A folio balance refers to the total value of investments in a portfolio. It impacts financial planning and investment strategies by influencing asset allocation decisions, risk management, and overall portfolio performance. Maintaining a balanced folio balance helps investors diversify their investments and achieve their financial goals.


Why are creditors stakeholders?

Creditors are considered stakeholders because they have a financial interest in a company's performance and stability. Their investment or loans depend on the company's ability to generate revenue and repay debts. As stakeholders, creditors are concerned about the company's financial health, which directly impacts their returns and risk levels. Additionally, they may influence business decisions and strategies to ensure their interests are protected.


What is the purpose of interest and how does it impact financial transactions?

The purpose of interest is to compensate lenders for the use of their money and to incentivize saving. Interest impacts financial transactions by influencing borrowing costs, investment decisions, and overall economic activity.


How does organizational culture impacts on productivity and job satisfaction?

how does organisation culture affects productivity


What legislation impacts on people performance?

lunn fuddi...


Do most public policy decisions involve some financial planning?

Yes, most public policy decisions involve financial planning, as they require careful allocation of resources to achieve desired outcomes. Policymakers must consider budget constraints, funding sources, and potential economic impacts when formulating policies. Effective financial planning helps ensure that policies are sustainable and can be implemented successfully, ultimately fostering accountability and transparency in government operations.


Why is the valuation of inventories important in financial reporting?

The valuation of inventories is crucial in financial reporting because it directly impacts a company's cost of goods sold (COGS) and, consequently, its gross profit and net income. Accurate inventory valuation ensures that financial statements reflect the true economic condition of the business, aiding stakeholders in making informed decisions. Additionally, it affects tax obligations and cash flow management, as understated inventories could lead to higher tax liabilities, while overstated inventories might mislead investors about the company's profitability and performance.


What are the effects or impacts of leadership in organisation?

Leadership in an organisation is playing a very important roll, leadership like a driver if leader ship is good the organisation will make more profit,good relation among the staff, good working culture and will keep the organisation to compete in the business, and if it bad only God know what to do akg1012003@yahoo.co.in


Can you tell me more about the RON (Return on News) metric and how it impacts media performance"?

The RON (Return on News) metric measures the impact of news coverage on media performance. It helps assess how well news content resonates with audiences and drives engagement. By analyzing RON, media organizations can understand the effectiveness of their news coverage and make informed decisions to improve performance.


What are positive and negative impacts of globalization in Kenya?

what is the society today on making bad decisions.


Why the cost for capital is important in the management?

The cost of capital is crucial in management as it represents the minimum return that investors expect for providing capital to the company. It impacts investment decisions, project evaluations, and overall financial strategy, helping managers determine which projects are worth pursuing. A lower cost of capital can enhance profitability and competitive advantage, while a higher cost may restrict growth opportunities. Ultimately, effectively managing the cost of capital aids in optimizing the company's financial performance and shareholder value.