I believe that the managers are the ones who are concerned with the organization's improvement, not the stockholders. The managers are involved in making crucial decisions that affect stockholders. The managers engage in activities that help the organization to accrue profits. In most organizations, managers work towards meeting various performance metrics such as profit, return on investment, and annual sales growth ( Clark, 2016) . The combination of different strategic plans such as marketing and ensuring the workforce is creative, enables the manager to increase sales while managing costs. The managers' role in providing job satisfaction is also crucial in enhancing the improvement of the organization. Primarily, managers make proposals to the stockholders concerning how employees can motivate to improve job satisfaction. The stockholders do not contribute to the growth of the business; however, they depend on the manager's strategic plans to realize the increase in the company's worth in terms of share market, stock prices, and profitability.
The notion of aligning the goals of both stockholders and managers will lead to development in the firm. In making the manager part of the stockholders, will improve their morale, leading to improved performance ( Clark, 2016) . In the context of hiring external consultants to oversee the performance of managers, the stockholders may not receive the improvement they desire in the corporation. Most people deliver their service better if they are not monitored.
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Part 2: Time Value of Money
The money that one has is better as compared to the expected funds in the future. The potential earning capacity of money that an organization has at that particular period is possible. Based on the core principle of finance, the worth of money is valued as soon as it is received. The potential of money to gain value is as soon as it is received rather than in the unforeseen future. Money at hand can earn compound interest that can be utilized in generating further investments.
Reference
Clark, W. (2016). Goals of Managers & Stockholders. Retrieved May 19, 2020, from https://smallbusiness.chron.com/goals-managers-stockholders-39185.html
