Problem
A. Who owns a corporation? Describe the process whereby the owners control the ?rm's management. What is the main reason than an agency relationship exists in the corporate form of organization? In this context, what kinds of problems can arise?
B. Suppose you were the ?nancial manager of a not-for-pro?t business (a not-for- pro?t hospital, perhaps). What kind of goals do you think would be appropriate?
C. Suppose you own stock in a company. The current price per share is 825. Another company has just announced that it wants to buy your company and will pay $35 per share to acquire all the outstanding stock. Your company's management immediately begins ?ghting off this hostile bid. Is management acting in the shareholders' best interest? Why or why not?