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Provide a well detailed answer explaining the financial logic behind especially and using real life company...

Provide a well detailed answer explaining the financial logic behind especially and using real life company as example.

why should companies  focus on the interest of the shareholders..

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Answer #1

Shareholders are the owners of the company. They have invested their funds into the business and expect a certain return on the amount so invested. The management are the representatives of the shareholders and are expected to act on their behalf. Their main motive hence is to increase the wealth of the shareholders since they have been assigned to work on behalf of the owners.

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