SS12 & Stakeholder

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:


long term growth

environmental friendly operations

better employee/social spirit


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.”