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solutions - shareholders and management conflict conflicts between management and shareholders may be resolved as follows like1 pegging or attaching
pursuing self esteem ambitions and creative accountingpursuing power and self esteem ambitionsthis is called empire building to enlarge the firm via
different evaluation horizons and mbodifferent evaluation horizonsmanagers might undertake projects that are profitable in short-run shareholders on
different risk-profile - shareholders and managementshareholders will generally prefer high-risk-high return investments while they are diversified
incentive problem and consumption of perquisitesincentive problemmanagers may have fixed salary and they may have no incentive to work hard and
shareholders and managementthere is near separation of ownership and management of the firm landlord employs professionals as managers who such have
stewardship accountingshareholders contribute capital that is provided to the directors that they employ and at the end of each accounting year
agency theory an agency relationship arises whether one or more parties identified the principal contracts or hires another identified an agent to
business ethics - objectives of business entityconnected to the question of social responsibility is the matter of business ethics ethics are
social responsibility - objectives of business entitythe firm must decide where to operate strictly in their shareholders best interests or be
shareholders wealth maximization - objectives of business entityshareholders wealth maximization refers to maximization of the total present value of
objectives of business entitythe main objectives of a business entity are clarified in detail below any business firm would have specific objectives
profit maximization - objectives of business entityconventionally this was considered to be the main goal of the firm profit maximization refers to
overlaps and conflicts overlaps - whenever attaining one means achieving the another conflicts - whenever attaining one cannot permit the achievement
objectives or goals of business1 profit maximization - this is a traditional and a cardinal objective of a business this is so for the following
routine functions - finance functionfor the effective execution of the managerial finance functions schedule functions have to be performed these
managerial finance functionsrequire skilful execution control and planning of financial activities hence there are four significant managerial
finance functionsthe functions of financial manager can broadly be split into two the managerial functions and the routine functionsmanagerial
important points - creditors financeswhen by using creditors finances a company must consider1 that cost of finance is less than the return that
financial managementon the other hand a financial manager has to meet the companys strategic or long term needs as long term investment are helpful
business finance and financial managementbusiness finance is the process through which a financial manager or accountant gives finance for business
valuing preferred stock gest inc has an issue of preferred stock outstanding that pays a 450 dividend every year in perpetuity if this issue
assignment mr ali wants to start rent-a-car business he wants to start this business with at least 20 cars he estimates that the required
a bond that has 1000 face value and a contract interest rate of 114 the bonds have a current value of 1124 and will mature in 10 years the firms
what will happen to the loss on account of premium redemption of debenture through sinking fund where do i close this account