I am betting stakeholder society question will be on the exam…
Yeah… just know advantages/disadvantages is my plan.
Isn’t that section mostly common sense? Is there anything in that section that they could really trick you with?
lets list them:
advantage:
long term growth
environmental friendly operations
better employee/social spirit
disadvantage
hard to raise capital/higher cost of capital
inefficient decision making process
disadvantages -
may not be able to raise capital (reluctance from capital markets)
inefficiencies with decision making (too many parties involved)
difficult to measure effects vs. shareholder maximisation
^ ineff dist of taxes
Don’t expect to see it. Seems to be one of the “easter eggs on the edge of the creek.”