I need both questionsIn typing 1. Why does Boatright believe that stakeholder interests are best served bystockholder management?a. Management decision making is a weaker form of protection than legallyenforceable contracts or legal rules.b. Management decision making is more effective when there is a single, clearlydefined objective.C. Both of the above reasons.d.. Neither of the above reasons..2. investors cannot expect of managers (more generally, principals cannot expect oftheir agents) behavior that would be inconsistent with the reasonable ethicalexpectations of the community. Goodpaster labels this principle thea. Stakeholder Analysis Principleb. Stakeholder Synthesis Principlec. Multi-Fiduciary Principled. Nemo Dat Principle3

The business environment is becoming more competitive, and the business needs to compete with each…

Answered: 1. Why does Boatright believe that…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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(1) If you were on the board of directors at a companyand the CEO proposed a merger with a topcompetitor, what types of questions would you wantanswered before you gave your approval? (2) If aCEO has an opportunity to merge with or acquireanother company and is reasonably certain that thetransaction will benefit shareholders, is the CEOobligated to pursue the deal? Why or why not?
What are the differences between shareholder wealth maximization and profit maximization? If a firm chooses to pursue the objective of shareholder wealth maximization, does this preclude the use of profit maximization decision-making rules? Explain.
Explain the concept of “stakeholder management” in a publicly held corporation. Why shouldn’t managers be solely interested in stock-holder management, that is, maximizing the returns for owners of the firm – its shareholders? Explain the impact and include the zero- sum and symbiosis roles of stakeholder management in your answer
A partnership agreement should include all of the following EXCEPT: (A) An indication of each partner's percentage of profits or losses. (B) The amount of cash or property which has been contributed by each of the partners. (C) How reimbursements for out-of-pocket expenses will be handled. (D) The amount of each partner's salary that they will receive each year.
Dell Company, a CPA firm, conducted an audit for the 2020 financial statements of Perla Corporation. During the course of the audit, the auditors noticed that the management had a known history of violations. This condition that might increase the risk of fraudulent financial reporting is related to the following category: * O Management's characteristics and influence O Industry conditions O Operating characteristics and financial stability O All of the above None of the above
Governance, Risk Management, and Control are interrelated terms. As an internal auditor whose primary task is to evaluate Governance, Risk Management, and Control, you must understand how these concepts interrelate with each other. Name one company (which can be a publicly listed, public company, registered issuer, non-stock, non-profit corporation, partnership, sole proprietor, and yes, even the sari-sari store of your neighbor), and illustrate the inter-relationship of Governance, Risk Management, and Control in your chosen company. Moreover, you may opt to design a simple one-line audit plan how will you evaluate the Governance, Risk Management, and Control of your chosen company.
(c) State, and critically evaluate the suitability of the factors that should be considered when deciding on a management remuneration package that encourages managers to maximise the wealth of shareholders.
Hubbard Industries just paid a common dividend, D0, of $1.30. It expects to grow at a constant rate of 3% per year. If investors require a 10% return on equity, what is the current price of Hubbard's common stock? Do not round intermediate calculations. Round your answer to the nearest cent. Carlysle Corporation has perpetual preferred stock outstanding that pays a constant annual dividend of $1.20 at the end of each year. If investors require an 8% return on the preferred stock, what is the price of the firm's perpetual preferred stock? Round your answer to the nearest cent.$ per share Assume today is December 31, 2013. Imagine Works Inc. just paid a dividend of $1.10 per share at the end of 2013. The dividend is expected to grow at 18% per year for 3 years, after which time it is expected to grow at a constant rate of 5.5% annually. The company's cost of equity (rs) is 9.5%. Using the dividend growth model (allowing for nonconstant growth), what should be the price of the…
3. What is the objective of the company in having a, strong and effective internal control system? 4. What is the purpose of having an independent internal audit function in a publicly-listed corporation?
We merged… Now What? Earlier this month, your company, a running equipment designer and manufacturer called Runners Paradise, merged with a smaller clothing design company called Active leak. Your compant initiated the buyout because of the excellent design team at Active Leak and their brand recognition, specifically for their MP3-integrated running shorts. Runners Paradise has 35 employees and Active Leak has 10 employees. At Active leak, the owner, who often was too busy doing other tasks, handled the HRM roles. As a result, Active Leak has no strategic plan, and you are wondering if you should develop a strategic plan, given this change. Here are the things you have accomplished so far: Reviewed compensation and adjusted salaries for the sake of fairness. Communicated this to all affected employees Developed job requirements for current and new jobs Had each old and new employee fill out a skills inventory Excel document, which has been merged into database From this point, you…
Decision makers and analysts look deeply into profitability ratios to identify trends in a company’s profitability. Profitability ratios give insights into both the survivability of a company and the benefits that shareholders receive. Identify which of the following statements are true about profitability ratios. Check all that apply. If a company has a profit margin of 10%, it means that the company earned a net income of $0.10 for each dollar of sales. If a company’s operating margin increases but its profit margin decreases, it could mean that the company paid more in interest or taxes. An increase in the return on assets ratio implies an increase in the assets a firm owns. If a company issues new common shares but its net income does not increase, return on common equity will increase.
In a public company, management acts as agent for the board and shareholders to purse the objective of maximizing shareholder value. True or Fasle?

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