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Explain the term StakeHolders
The range of stakeholders may comprise directors/managers, lenders, shareholders, employees suppliers and customers. These groups are probable to share in the wealth and risk generated by a company in different ways and thus conflicts of interest are likely to exist. Conflicts as well exist not just between groups but within stakeholder groups. This might be for the reason that sub groups exist example preference shareholders and equity shareholders. Otherwise it might be that individuals have different preferences for example return and risk, short term and long term returns within a group. Excellent corporate governance is partly about the resolution of such conflicts.
Equity Theor y This theory proposes that individuals measure their out- comes/input ratio. Equity theory distinguish that inspiration is not the outcome of an absolute
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#questThe managing directors of three profitable listed companies discussed their companies'' dividend policies at a business lunch. Company A; has deliberately paid no dividends
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