Question -
1. The Goal of Financial Management
Discuss the Goal of Financial Management!
2. Agency Problems
Discuss agency problems in modern corporations with consideration of the following issues:
1. How does a principal-agent relationship form?
2. What major problems do exist between shareholders and top managers?
3. What devices do shareholders use to control agents?
4. Is there a conflict between large shareholders and small shareholders?
5. Do you think the current practice of executive compensation is working well to reduce agency problems? Why?