Important aspects of financial decisons, stakeholder interests and opportunity in disguise

There are a lot of important aspects of financial decision with respect to the stakeholder and their interests.

Being a student I mostly identify myself with community citizen and financial activist. Now there are many stakeholders in a corporation and before I can relate them to what I am about to tell you, I must discuss with you about them.

At the top level, there are the equity holders, that is the company owners/founders, who have personal vested interests and the bondholders from whom money maybe be borrowed/lent like financial institutions for example banks. Then there are other shareholders of the company like investors and employees.

The most important thing to note here is that everyone leaving the owners are protected by legally binding contracts, therefore leaving them with all the risk but also the most profit. The employees can sue, the bank can declare bankruptcy and freeze assets if their interests are not met. The least I can identify myself with is a government employee who is fully protected, has a pension for life and whose job is to administer others.

The interests of owners are aligned with our own in this time of the pandemic, since starting a business in these times is very risky with low support from banks but it can be very profitable considering the independent vision of our country. Many new businesses has started in the medical industry, pivotal decision in the clothing industry, for example, making masks and PPE kits have even made them very profitable for the current and also maybe the coming quarter. Well, in this case, you can say that both equity and bondholders will have greater revenue generation by turning a crisis into an opportunity.

Our action plan should be to invest and build new business, upskill ourselves to brace against obstacles because the crisis has yet not ended and our economy depends on us.

Because as someone great once said, "Every crisis is an opportunity in disguise"

Also read my first blog, who I am and why this blog here

ps - I am an engg. student currently self learning financial literacy through finance for everybody:course and building a financial portfolio through a blog.