On Why the Health of American Economy Depends on the Corporations - Finance - Taxes

The United States is one of the many countries in the world with relatively tough corporate laws. Federal authorities are strictly monitoring the business practices of corporations, especially in their bookkeeping methods and the way their officials are getting paid. One lapse by these entities will surely result to severe penalties.

The protection of the interest of stakeholders in a corporation is also one of the reasons why federal authorities are strict with the rules. Stockholders and others with direct or indirect links with a business entity must always be informed of what is going on by corporation officials. The selection of the next set of company officers should be done in an honest and transparent fashion, something that authorities monitor during stockholders meetings.

To federal monitoring agencies, the good health of the countrys corporations means full trust and confidence that investors have on the American economy. If a corporation will be embroiled in a scandal or will go bankrupt, it will have huge repercussions, putting the entire economys status on the line. This is something that the federal government wanted to prevent, especially now that the country is still recovering from the effects of the recent economic crisis.

In ensuring that corporations will do their part of the deal, accounting firms in Indianapolis are tasked to monitor their books. Bookkeeping methods of companies had been subject of past controversies in the corporate world. Accountants play a crucial role in giving the government and stakeholders the assurance that corporations are honest enough when it comes to presenting their books to them.

Aside from the role the accounting firms Indianapolis has are playing, it is also essential that stakeholders will be empowered to make inquiries with company officials, especially during stockholders meetings. Stakeholders are the ones who should determine the path that their company is going. This can only be done when they have the ability to inquire on their officials, making sure that everything within a corporation is smooth sailing.

From the role accounting firms in Indianapolis are playing to empowering stakeholders, federal officials must be able to effectively watch over the countrys corporations. Corporations make up the vast majority of the free economy that the United States has. Compromising such freedom will be bad for everyone in all 50 states, thus the need for federal officials to do their jobs well and corporations to become honest and transparent.

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