CHAPTER ONE
1.0 GENERAL INTRODUCTION
1.1 Background to the Study
Corporate organisations are the drivers of every nation‟s industrialization, commerce, employment and general economic development. Companies are business ventures that are established to produce goods or provide services for consumption by individuals, organisations and government. They are regarded as the engine of growth and development1. Companies provide investment outlets for the public to invest with the expectation to receive returns on their investments and improve their economic strength. In order to carry on their activities, companies employ people in various levels of the workforce who are remunerated in form of salaries, wages and allowances. Those who receive financial benefits from companies use their money to improve their standard of living by taking care of themselves, their families, accessing health care, sending their children to good schools and payment of taxes to the government. Companies also engage in corporate social responsibilities in their host communities to improve the social wellbeing of the people. Some companies provide scholarship; others build schools and other philanthropic activities. In addition companies provide taxable revenue to the government. Companies pay corporate tax while employees and investors pay taxes on income derived from companies. The revenue derived from these taxes by the government is used for government operation and provision of infrastructures that would become factors of economic and technological development in the country. Based on the above premise the performance of companies is of interest to not only government but also individuals. Several classes of people have stake in the company and would not want their stake to be destroyed due to the collapse of the company.
Leave a Reply
You must be logged in to post a comment.