Managers’ decisions can affect, negatively or positively and directly or remotely, every stakeholder in each stakeholder group. Presentation of correct budget estimates is vital in order to not mislead members of those groups. Managers’ Marge Atkins and Peter Granger failed to do so by overestimating expenses and underestimating sales, which had an affect of Grangers’ adjustment of production levels.
Owners make their decisions concerning business operations by looking at business performance on financial statements and comparing actual statements with the ones predicted. If the budget prediction is presented to investors, then they might use similar patter in decision making as business owners. Underestimation of sales will lead to sales