0
When you hold a share of a company, you are an investor in the company. You have invested your money in the company and it is the prime goal of the company's management to ensure that they earn sufficient revenue and profit for you "the investor" who has invested in the company.
Ideally speaking, shareholders can be considered as owners of the company and the managers can be considered as employees working for the company.
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
What are the relationship between project managers and line managers?
The relationship between project managers and line managers is that the project managers divide the work among the line managers and the line managers report to the project managers.
Will managers always make decisions that will be in the best interests of shareholders?
No. Their pay arrangement can give you a good indication as to how well they will act on the shareholders' behalf.
Why conflict can happen between stakeholder?
Stakeholders are customers, competitors, society, government, managers, workers, shareholders... These stakeholders have different objectives: Shareholders want more profits but managers want the business to expand so as to receive more salary and increase their status. In this case, if managers decide to expand the business, the shareholders will receive less dividend since the money is used for the expansion, thus there is a conflict.. Customers want a better quality of products and a cheaper price. Society wants businesses to use environmentally friendly materials. Workers want a secure job and maybe a high pay...
The relationship between project management and general management?
General Management is considered to be a high level stakeholder when it comes to Project Management. Project Managers might report directly to General Management, or to executive managers/program managers who then report back to General Management.
What are the agency problems between shareholders and management?
faak it
What are the relationship between project managers and line managers?
The relationship between project managers and line managers is that the project managers divide the work among the line managers and the line managers report to the project managers.
What is the relationship between shareholders with company or corporation?
Shareholders are the people who invest from in the corporation by buying stock.
What is financial gearing?
It is the relationship between shareholders equity and fixed interest debt.
How managers can be motivated to act in the shareholders' interest?
Profit sharing, the more money the manager makes, the more the shareholders make.
How are managers bonded to shareholders?
1. Shareholders determine the membership of the board of directors by voting. 2. Contracts with management and arrangements for compensation can be made so that management has an incentive to pursue shareholders' goals. 3. Fear of a takeover gives managers an incentive to take actions that will maximize stock prices 4. Competition in the managerial labour market may force managers to perform in the best interest of shareholders. Firm willing to pay the most will lure good managers.
How can managers be encouraged to act in shareholders best interest?
Managers can be encouraged to act in their shareholders best interest by linking their pay to the stock price. When they are motivated by compensation then they will do things to make the share price increase.
How does agency problem affect the relationship of financial manager with the company?
agency problem affects the financial manager relationship with the company by means of trust. if we are going to study the principal-agent relationship (principals=shareholders ; agent=managers,CEO,BOD), the agent will stand for and on behalf of the principal with the accompany of trust and confidence by the principals, but when agency problem occur where the agents are planning to pursue some objectives that are attractive to them while not beneficial for the principal the gap between the shareholders and the management team were created...
What is the relationship between shareholders directors and management in a privately held company or corporation?
only boss and servent.
Explain the relationship a CEO has to a company's shareholders?
i think that the CEO works for the shareholders.
When can there arise a conflict between shareholders and managers goal?
conflicts between a shareholders goals ana a managers goal may arise when the shareholder decides to by-pass the principle of agency theory which states that the mangers and shareholders should have equal rights of financial decision making unless one via the other is made to be clearly resolved through devastating financial effects. the conflict from here then oon arises.
Agency theory in corporate governance?
Agency theory in corporate governance is a framework that looks at the relationship between principals (shareholders) and agents (management) in a company. It seeks to understand how conflicts of interest arise between these two groups and how they can be mitigated through mechanisms such as executive compensation, board oversight, and monitoring. The theory highlights the importance of aligning the interests of managers with those of shareholders to promote accountability and maximize firm value.
Will managers always make decisions that will be in the best interests of shareholders?
No. Their pay arrangement can give you a good indication as to how well they will act on the shareholders' behalf.
