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Company Accounts Essay Topics & Paper Examples

Using and Interpreting Company Accounts

Management should not solely focus on financial factors like the ones outlined in part (a) of this question. Qualitative characteristics should also be taken into account, because they also hold an important affect on the organisation. For instance, management should consider the willingness of common stockholders to a new issue of common stock. Normally a new issue of common stock leads towards a fall in the share price due to an increase in the supply of stock. In addition the proportion of shareholders will increase and shareholders that hold a significant voting power may be reluctant for this to happen. The debt decision will also hold an affect on common stockholders. A growth strategy is frequently regarded as a risky…