Financial Performance Measures
Lenders, investors, and other interested parties review financial measures of performance of enterprises for making credit, acquisition, and divestiture decisions. These measures are also of interest to regulators, such as taxing authorities, who use them for trend analysis.
If lenders, investors, and regulators are reviewing certain measures of financial performance of an enterprise, then management must be also.
The managerial role is about applying resources to activities to achieve results, and is conducted within the context of planning and policy development and performance measurement activities.
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