Discussion – Week 4

Discussion – Week 4

Order Description
The following statement was made by the vice president of finance of Electro Inc.:

“The managers of a company should use the same information as the shareholders of the firm. When managers use the same information in guiding their internal operations as shareholders use in evaluating their investments, the managers will be aligned with the stockholders’ profit objectives.”

What type of risks would the organization have if managers only used data available to shareholders? How would you share your position with the vice president?