Wednesday, May 22, 2019

The primary stakeholders for this case

The primary stakeholders for this case are the investors, stock holders and other clients that are get uply doing personal line of credit with the political party. Furthermore, secondary stakeholders can be the companys employees and board members. Whatever decision the companys ascendency takes, it will have a direct effect on these com/tesco-and-oxfam-stakeholders/stakeholders. b. The death chairs request regarding increasing the recompense for doubtful accounts from 2% to 4% poses some ethical dilemma for the company.As the controller of the company, the controller knows what is best for the company, thus, suggesting a 2% allowance for doubtful accounts guarantees that the company will be, at least, achieve its target growth rate. However, the president wants the company to play safe, thus, suggesting an affix in allowance. Even though the president has a good intention in his request, the fact that he is overestimating the allowance poses many possible effects for the comp any and for the stakeholders in the long run.The company and its stakeholders might be mislead by the impression that they are achieving their target growth rate when in fact, that percentage is get off compared to the actual target growth rate that the company should accomplish. In addition, the request posted by the president does not have any quantitative information to support the decision. This, in the long run may underestimate the potential of the company in terms of financial growth because the increase in allowance in turn, means an decrease in company income (Clausen 2009).c. The companys controller should be concerned in the company growth rate because as the companys employee, he is also a stakeholder of the company who can be affected if wrong decisions are implemented. His job of assuring the companys stability will be affected if wrong estimations regarding financial activities will be followed. He as the controller should make sure first if the presidents suggestio n would be suitable for the company before implementing it.If the suggestion will pose unreasonable risk for the company, then the suggestion should be wedded and other ways on securing the companys growth rate should be done to still achieve the target results (Clausen 2009). ? Source Clausen, James (2009). business relationship 101 Allowance for Doubtful Accounts. Suite 101. com. Available at http//accounting. suite101. com/article. cfm/accounting_101_allowance_for_doubtful_accounts

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