The Finance Function of Companies Is Under Increasing Pressure to Produce

question 27

True/False

The finance function of companies is under increasing pressure to produce meaningful information that can be readily understood by part-time directors.

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Definitions:

Shareholders' Ability

Refers to the rights and powers of shareholders to influence company decisions and actions through their ownership stake.

3 P's

Stands for People, Planet, and Profits; a principle that suggests companies should balance financial gains with social and environmental considerations.

Organizational Performance

The analysis of a company's efficiency, effectiveness, and ability to achieve its goals, often measured via metrics such as profitability, market share, and productivity.

Procurement

The process of obtaining goods, services, or works from external sources, often via tendering or bid process, to fulfill a need or requirement.