Examlex
Corporations who run their operations according to the stakeholder theory of the firm create value by:
Company Performance
An assessment of a company's operations, profitability, and financial health over a specific time period, often evaluated through financial ratios and benchmarks.
External User Needs
The information requirements of individuals or entities outside a company, such as investors, creditors, and regulatory agencies, for making informed decisions.
Profit Margin
A financial ratio that measures the percentage of profit a company generates from its revenues, indicating the efficiency of a company in controlling its costs.
Total Asset Turnover
A financial ratio that measures the efficiency of a company’s use of its assets in generating sales revenue.
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