Describe the obligations of business towards owners and shareholders .

1.	Describe the obligations of business towards owners and shareholders .
Answer» Social responsibility of business towards its shareholders or investors is most important of all other obligations. If a business satisfies its investors, they are likely to invest more money in a project. As a result, more funds will flow in and the same can be utilized to modernise, expand and diversify the existing activities on a larger scale. Happy financiers can fulfill the rising demand of funds needed for its growth and expansion. 1. They need to give a fair return to shareholders. 2. They need to give true and fair information to shareholders. 3. They need to give them proper opportunity to participate.

Answer»

Social responsibility of business towards its shareholders or investors is most important of all other obligations.

If a business satisfies its investors, they are likely to invest more money in a project. As a result, more funds will flow in and the same can be utilized to modernise, expand and diversify the existing activities on a larger scale. Happy financiers can fulfill the rising demand of funds needed for its growth and expansion.

1. They need to give a fair return to shareholders.

2. They need to give true and fair information to shareholders.

3. They need to give them proper opportunity to participate.

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