What are the responsibilities of business towards its shareholders (investors) and creditors?



The responsibilities of business towards shareholders (investors) and creditors are as follows :

  1. To ensure safety of investment.
  2. To provide a fair and regular dividend or interest.
  3. Growth of the business should be planned.
  4. There must be effective communication.
  5. It must utilize resources properly.
  6. To offer reasonable opportunity for participation of shareholders in policy decisions.