How do the shareholders of an organization can encourage its manager to act in a way which is consistent with the objective of maximization of shareholders' wealth?

Q: What actions that shareholders can take to ensure that management's and shareholders' interests are…

A: The shareholders are the owners of the company. They are responsible for the decision making and…

Q: WRITE and submit a prepare on your perspective to the statements: “The primary role of management…

A: This statement reflects the shareholder wealth maximization (SWM) concept, which asserts that the…

Q: What is the common agency problem faced by shareholders? Describe TWO (2) situations in which…

A: When the conflicts of interest arise between any relationships then it is referred as agency…

Q: How the corporate governance is useful for a company? O a. It maximizes the mismanagement of the…

A: ANswer -    Option C is Correct Option - C. It Maximizes the Share Prices of the Company .

Q: What are some ways a board can train their employees to be effective in its financial decision…

A: It is important that employees view the goal of the company in the same way as the board would view…

Q: Which governance model involves shareholders  and creditors as the main factors

A: In comparison with investors, who put money into a company by buying shares and therefore becoming…

Q: corporate social responsibility

A: 1) Corporate social responsibility (CSR) is a term used to describe a company’s efforts to improve…

Q: What is market efficiency? How is the concept of market efficiency an important part of shareholder…

A: Introduction: Market efficiency-It is a term and it refers to any metric that helps in measuring…

Q: Explain the importance of corporate governance to publicly-held company in relation to any interest…

A: Corporate means company and governance means set of rules and regulations. So, corporate governance…

Q: What actions that shareholders can take to ensure that management’s and shareholders’ interests are…

A: Shareholders are individuals that own shares in the company and thus has some percentage in the…

Q: What is corporate governance? How does corporate governance affect the returns generated for…

A: Corporate governance is an importance concept in corporate finance.

Q: Firms should focus on promoting the interest of all stakeholders rather than prioritising only the…

A: The shareholders owners of the company and the invest there on in the company in order to get the…

Q: RUE or FALSE: Managers recognize that being socially responsible is not inconsistent with…

A: For a long time managers only focused on maximizing shareholder value through a relentless focus on…

Q: Choose the best description of the goal of the financial manager in a corporation where shares are…

A: Financial manager in a corporation where shares are actively traded will try to maximize the…

Q: What are the supposed benefits of targeting owners' wealth? 2. How can managers target owners'…

A: Targeting the owner's wealth refers to the maximization of the wealth of the owners. Targeting the…

Q: Discuss the tension between Corporate Social Responsibility and the management's fiduciary duty to…

A: The management is the executives taking an acting decision on the behalf of the shareholders. The…

Q: What is the primary objective of the financial manager? How are they different from other manager

A: Financial manager is a person who is  responsible for carrying out various financial functions of an…

Q: What are agency problems, and why do they exist within a corporation? Discuss how agency conflicts…

A: Shareholders: Shareholders are the owners of a corporation, where they purchase the ownership in the…

Q: What is the commonly-cited objective of corporate managers in make decisions for a firm? Maximize…

A: The notion offered in the question is associated with the  principal goals that corporate managers…

Q: Explain how a firm might use stock options in order to incentivize a manager to work in the…

A: It is a duty of a manager to work towards the interest of shareholders/origination because manager…

Q: what are the factors that impact corporate governance

A: Concept of Corporate GovernanceCorporate governance is the set of laws, customs, and procedures that…

Q: Sumarise the advantages and dis advantages of corporation which features contribute to the dominance…

A: Corporation is form of organization under which the owners are carrying separate entity from the…

Q: How can you empirically assess the relation between a firm’s leverage with CEO ownership and board…

A: The objective of this question is to understand how to empirically assess the relationship between a…

Q: WHAT IS THE GOAL OF FINANCIAL MANAGEMENT IN A CORPORATION

A: The goal of financial management in a corporation is to maximize shareholder wealth or maximize the…

Q: What is the primary concern associated with the agency problem in corporate finance? Maximizing…

A: The agency problem is the issue associated with the principal-agent conflict in which the agent…

Q: Is the Strategic Stakeholder model of Corporate Social Responsibility closer to the Shareholder…

A: We have to briefly understand what are  Strategic Stakeholder Model of Corporate Social…

Q: What is the implication of managerial entrenchment: should company favor debt or equity? Why?

A: Managerial entrenchment theory-says that allotment of shares inside the organization such as…

Q: Explain how principal-agent problems can emerge within shareholder firms and some of the…

A: Principal-agent problem is one of the common conflict which is observed in a shareholder firm or a…

Q: question 1 a) discuss ways in which a company's shareholders can encourage its managers to act in…

A: Shareholders are the people who invest their extra money in the business by buying its shares. The…

Q: What is the main goal of a firm? Is it to maximize profits or to maximize shareholder wealth? State…

A: The management of a firm can have many goals, which can include maximizing wealth and profits or…

Q: Explain the Threat and Opportunity of Shareholder Activism ?

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Explain the Threat and Opportunity of Shareholder Activism ?

A: Shareholder's Activism: Shareholder activism is a technique for shareholders to influence a…

Q: Shareholder theory states that the primary objective of management is

A: Shareholder Theory is a concept that states that the shareholders are the ultimate owners of the…

Q: If management’s goal is to maximize shareholderwealth, should it focus on the regular IRR or…

A: The question is based on the concept of wealth maximization for shareholders, which can be achieved…

Q: How does the activity of investors effect the decisions of executives within the firm?

A: There is no direct connection between the activities of investor  in financial markets with the…

Q: What are the defferent forms of business organizations

A: Business organizations are commercial enterprises formed for the objective of profit. It includes-…