The management of a listed company has a fiduciary duty to act in the best interest of
Question:
‘The management of a listed company has a fiduciary duty to act in the best interest of the current shareholders and it would be unethical for them to act in the interest of other parties if this did not maximise the existing earnings per share.’ Discuss.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 72% (11 reviews)
The management of a listed company has a fiduciary duty to act in the best interest of the current s...View the full answer
Answered By
Tamondong Riza
Professionally, I am a teacher with years of experience tutoring math and science, as well as teaching in both public schools and independent schools. I feel that education should be an enlightening experience for all children, and I'm committed to helping my students learn new skills and make progress in their subjects.
0.00
0 Reviews
10+ Question Solved
Related Book For
Financial Accounting And Reporting
ISBN: 9781292255996
19th Edition
Authors: Barry Elliott, Jamie Elliott
Question Posted:
Students also viewed these Business questions
-
If managers act in the best interest of the shareholders, are they protected by the business judgment rule?
-
The management of a business is concerned about its inability to obtain enough fully trained labour to enable it to meet its present budget projection. The amount of labour likely to be available...
-
The management of a privately held company has made the decision to go public. Many interrelated steps need to be completed in the process of making the initial public offering of stock in the...
-
In Problems 1130, solve each equation by factoring. x 2 - 9x = 0
-
What are the different methods of entry for predictors in multiple regressions?
-
For the following exercises, graph the system of inequalities. x 2 2x + y 2 4x < 4 y < x + 4
-
What are the three parts of a make rule?
-
Each of the following situations involves possible violations of the AICPA's Code of Professional Conduct. For each situation, state whether it is a violation of the Code. In those cases in which it...
-
Explain data definition language (DDL). How is it different from data manipulation language (DML)?
-
There are 2 shinobis with chakra levels 5 and 10 respectively and the desired sum of chakra levels is utmost 15 Starting with ke0, suy of chakra levels after attack max(5-0,0) + max(10- 0,0) 5+10 15....
-
How might a company develop a code of ethics for its own use?
-
Discuss the role of the accounting profession in the issue of ethics.
-
Describe the structure and functions of the spinal cord?
-
Dickinson Brothers is considering investing in a machine to produce computer keyboards. The price of the machine will be 400,000, and its economic life is 5 years. The machine will be depreciated by...
-
A firm is considering an investment in a new machine with a price of 32 million to replace its existing machine. The current machine has a book value of 8 million and a market value of 9 million. The...
-
Le Verd SA has a ratio of long-term debt to total assets of 0.70 and a current ratio of 1.20. Current liabilities are 850, revenues are 4,310, profit margin is 9.5 per cent, and ROE is 21.5 per cent....
-
Using the references from Exercise 5.3, show the final cache contents for a three-way set associative cache with two-word blocks and a total size of 24 words. Use LRU replacement. For each reference...
-
Present Value A 25-year fixed-rate mortgage has monthly payments of 717 per month and a mortgage interest rate of 6.14 per cent per year compounded monthly. If a buyer purchases a home with the cash...
-
How consistent are people in their voting habits? Do people vote for the same party from election to election? Below are the results of a poll in which people were asked if they had voted Democrat or...
-
Ask students to outline the reasons why the various elements of culture (social structures and control systems, language and aesthetics, religion and other belief systems, educational systems, etc.)...
-
Set out below are the financial statements of Ant Co., its subsidiary Bug Co. and an associated company Nit Co. for the accounting year-end 31 December 20X9. Statements of comprehensive income for...
-
Alpha has owned 75% of the equity shares of Beta since the incorporation of Beta. Therefore, Alpha has prepared consolidated financial statements for some years. On 1 July 20X6 Alpha purchased 40% of...
-
The following are the statements of comprehensive income of four companies for the year ended 31 October 2006, the end of their most recent financial year. The following additional information is...
-
You've just graduated from college with a student loan debt of $30,000. You plan to find a job that pays $50,000 annually. Considering different repayment options (standard, income-based), what...
-
Describe the differences between managerial and financial accounting. Describe the differences as they relate to the users of the information, the purpose of the information, and the time frame (past...
-
Margarita Dalvi is a financial analyst employed by a large public company with gross revenues of $295 million. Her salary in 2023 is $143,000; none of which is commission income. Her employer does...
Study smarter with the SolutionInn App