It has been suggested that, although ordinary shareholders are the overall owners of a corporation, they have

Fantastic news! We've Found the answer you've been seeking!

Question:

It has been suggested that, although ordinary shareholders are the overall owners of a corporation, they have little effective control over a company, in relation to management of that firm. If this is the case,

what induces manages to direct their activities towards maximising shareholder wealth?

Related Book For answer-question

International Marketing And Export Management

ISBN: 9781292016924

8th Edition

Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr

See More Books

Posted Date: Mar 11, 2024 11:57 PM

See More Questions

Developments in Technology Light is incident from air on the end face of a multimode optical fibre at angle of incidence as shown below. n n 1 2 The refractive indices of the core and cladding are...
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
From the attached article: 1) Introduction - Describe the case. What happened? When did that happen? Who got involved? 2) Identify the link between the case and global market changes?...
Can hydrogen or deuterium emit an particle? Explain.
What is the difference between unstack and stacked variables?
Parkes Book Company's management is considering an advertising program that would require an initial expenditure of $165 500 and bring in additional sales over the next five years. The projected...
Acne Medication and Gastrointestinal Injury Since 1999, Kamie Kendall had experienced ongoing abdominal pain, and she was eventually diagnosed with ulcerative colitis and irritable bowel syndrome...
Direct materials and direct manufacturing labor variances. GloriaDee, Inc., designs and manufactures T-shirts. It sells its T-shirts to brand-name clothes retailers in lots of one dozen. GloriaDees...
Unusual shapes! At this point, we've gotten pretty comfortable with calculating the perimeter and area of squares and rectangles. In this assignment, we'll make a program that calculates these values...
No rational needed 2 3 . A candy store sent an order on December 1 to a jellybean manufacturer for 5 0 0 bags filled with red, heart - shaped jellybeans in anticipation of Valentine s Day on...
What does this tell you about the relationship between capital structure and shareholder risk? How is the shareholders required return on equity affected? Explain.
Simulate the processing of the program in Problem 10-12 using the RISC CPU with data-hazard stall in Figure 10-12. Give the contents of each pipeline platform and the register file (the latter only...
Heineken NV has decided to borrow money by issuing perpetual bonds with a coupon rate of 6 per cent, payable annually. The one-year interest rate is 6 per cent. Next year, there is a 35 per cent...
Despite the significant costs of high leverage, tax systems around the world have a built-in debt bias. Why do you think this is?
Tvep plc issued convertible bonds with a conversion price of 20. The bonds are available for immediate conversion. The current price of the companys equity is 18 per share. The current market price...
Write a script that includes an Englishman as a trader of the Company, the local king and Indian traders. This will highlight the position of English East India Company traders in India about to...
You have accepted the engagement of auditing the financial statements of the C. Reis Company, a small manufacturing firm that has been your auditee for several years. Because you were busy writing...
Explain when the export firm should no longer be concerned with the pricing of its products.
Aquabear AB was founded in 1970 in Stockholm, Sweden, as a small private company that manufactured maritime leisurewear clothing. In 1975 the company started a line of ski clothing using the brand...
Indias Tata Motors, the nations largest vehicle maker, purchased bankrupt Daewoo Commercial Vehicles in 2004 in order to gain entry into the South Korean market and access to Daewoos technology. It...
Go to http://management.about.com/lr/project_time_ management/174690/1/ and click on Project Management on the left side of the screen. When you consider several of the articles on time management in...
Consider the following information that you have compiled regarding the steps needed to complete a project. You have identified all relevant steps and have made some determinations regarding...
Key in a search with the prompt projects in in which you select a country of interest (e.g., projects in Finland). Many of the projects generated by such a search are government-sponsored...

It has been suggested that, although ordinary shareholders are the overall owners of a corporation, they have

Question:

Expert Answer:

If ordinary shareholders have limited effective control over a company it can be challenging for them to directly influence the management of the firm ... View the full answer

International Marketing And Export Management

Students also viewed these accounting questions