This course considers the relationship of a business with one of its key external stakeholder groups – the providers of financial resources, who are also investors in the business.
Two key questions, for you as a manager, are:
- Which projects should your organisation invest in?
- How should your organisation find and secure the finance to pay for them?
Additional questions to ask are:
- How do investors get information to decide where to invest their savings?
- How can investors control the way their savings are used?
- How can businesses be accountable to their investors?
- What is a fair return for the investors to receive in return for the use of their savings?
- How do investors assess the risk of entrusting their savings to businesses and how are they rewarded for running that risk?
- How do the financial markets match investors with users (i.e. businesses)?
- How efficient are the financial markets at pricing?
Activity 3: Identifying key themes
Can you identify some key themes from our questions, above?
Key themes are: