Question

a stakeholder point of view why finance is important and how it impact an organization

Answer 1

Finance is important and it will be impacting the organisation because-

A. Finance will be important in order to maximize the value of the company in the long run and it will be help in survival of the company in the long run so Financial Management is important from a company's perspective.

B. Companies who are generating higher money and engaged in better financial management activities are more likely to protect interest of the stakeholders.

C. Those companies which are generating higher profits and higher cash flows and they are having an adequate financial management will always be trying to engage into fair disclosure policy and they will not be engaging into any kind of manipulation of books of accounts and they will be rather sticking to fair disclosure of books of accounts.

D. Those company who are having higher profits and better financial management are more likely to generate employment and provide employment opportunity to various members of the society.

E. Those companies who are having better financial management mechanism established will more likely to engage into the charity works and they are more likely to return to the society than that get.

F. These companies are also so more likely to provide better products and comply with rules and regulation specified in regards to these corporates.