Respuesta :
corporate managers work for the owners of the corporation. consequently, they should make decisions that are in the interests of the owners, rather than in their own interests. what strategies are available to shareholders to help ensure that managers are motivated to act this way?
1. Mount hostile takeovers.
2. Write contracts that ensure that the interests of the managers and shareholders are closely aligned.
3. Ensure that employees are paid with company stock and/or stock options.
4. Ensure that underperforming managers are fired.
What kind of decision is the finance manager most likely to make?
Dividend Policy: Choosing the company's dividend policy is one of the most crucial financial decisions a financial manager must make. It concerns the percentage of profits that will be distributed to shareholders.
Why do all shareholders support the same financial manager objective?
The primary objective of financial management is to maximize the wealth of the owners, or stockholders, and guides all of the financial manager's choices.
In a corporate setting, what does the phrase "limited liability" mean?
The amount of the owners' investment in the company is the maximum liability. The firm's obligations are not the responsibility of the company's stockholders, and they are not liable for any debts the company accrues.
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