Question

fulfilling responsibilities towards shareholders and creditors are example of which objective​

Answer 1

Answer:

shareholders and owners want to ensure the business is successful and are interested in how much profit the business can make.

managers want a good salary and opportunities for further career progression.

Explanation:

Answer 2

Answer:

Organizations must provide shareholders with regular, accurate, and complete information about their operations as well as future growth plans. The responsibility of a business enterprise is to provide a reasonable return to its shareholders or owners.

Explanation

Responsibility of a Business towards Different Sections of Society

            Business is dependent on society for inputs such as money, men, and skills, as well as a market where products must be sold to customers. The business relies on society for its survival, sustenance, and encouragement.

• Being so much dependent on society, business also has a definite responsibility towards different segments of society. Though profit making is one of main objectives of business but it has to satisfy employees, consumer, government, community, shareholders also.

• Shareholders, or the owners of a business, should be provided with accurate information about the company in order for them to make informed decisions about future investments.

Responsibility towards Stakeholders/Shareholders

The company should give shareholders a reasonable return on their investment. If shareholders do not receive a proper dividend, they will be hesitant to invest additional funds in the company. For the company's healthy growth,

• shareholders should be kept fully informed about its operations. The Companies Act of 1956 also requires companies to provide complete disclosure in published statements.

• Company should strengthen the share prices by its growth, innovation and diversification. At the same time shareholders shall also offer wholehearted support and co-operation to the company to protect their own interests.

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