Question

Strathroy Ltd. (Strathroy) is a publicly traded newspaper publishing company. The newspaper indus try has faced difficult times in recent years with declining circulation and advertising revenue, in part caused by competition from the Internet and other information sources. As a public company Strathroy has many different stakeholders with different goals and objectives for using the financial statements. The following are some of Strathroy's stakeholders:
a. Leaders of a union about to negotiate a new contract for its members.
b. A large supplier of newsprint negotiating a long-term contract to supply newsprint.
c. The CEO of the company who is paid a bonus based on the company's performance.
d. A financial analyst preparing a report for investors on Strathroy. The analyst's employer does investment banking work for Strathroy.
e. Strathroy's shareholders, including 40 percent of the shares that are owned by members of the family that founded the business 75 years ago.

Required:
Different stakeholders of an entity will view the entity's goals and objectives in different ways, in part (at least) influenced by their personal goals and objectives (self-interests). For each of the stakeholders listed above explain what the stakeholder would want to accomplish in its dealings with Strathroy. Explain how the interests of the identified stakeholder could conflict with the interests of other stakeholders.



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  • CreatedFebruary 26, 2015
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