Outside analysts and investors consider how effectively management has managed the company's tax exposures because income taxes represent one of the largest expenditure incurred by a company.
Tax exposure exists whenever a company has unpaid tax liabilities which have not yet been discovered by the taxing authorities. In order to consider how effectively management has managed the company's tax exposures, the outside analysts and investors play an important role.
Taxes are the primary source of revenue for most governments. Thus, the money generated from tax is spent by government to improve and maintain public infrastructure, including the roads we travel on, and fund public services.
Hence, the answer is given and explained above.
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