Management And Durable Development

In a management agreement the selection of performance criteria is a complex process. In the business field there is a harsh competition striving for progress and prosperity. Typically, in their search for reporting very good results, managers manipulate results, auditing firms compile positive results, rating organizations award very good scores, the quotation of the shares on the sharemarket grows up; nevertheless, the actual economic status of companies is more often different and may result in shattering bankruptcy. Therefore, to better protect the shareholdres’ interests in their agreement-based relationship with managers, it is important to define what type of performance indexes are mostly relevant in a management agreement; also, it is important to identify what kind of reconsideration of financial statements has to be done to avoid fraud, to better show the actual activity results, and lastly to provide the progress and prosperity for the purpose of the durable development of national or international companies.