Module 1 Flashcards
1
Q
Why is there financial reporting?
A
Facilitate monitoring
2
Q
What allows current and potential investors to evaluate a business (and punish for poor performance)?
A
monitoring
3
Q
What are ways to put pressure on business if financial statements show poor performance?
A
put pressure on board of directors, proxy fight, refusing to lend or lend at a higher rate, bidding down the price of shares (sell off or short selling)
