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Q: How could shareholders in the company influence its policy?
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Why do businesses want to grow?

Because their owners (shareholders) want to get a return (an increase) on the value of their investment each year. This means the company needs to generate more profit each year. The shareholders will usually elect a board of directors who are most likely to achieve this growth in profit - at an acceptable level of risk. A company's shareholders could however decide they want a low growth/low risk strategy.


Why do companies issue stock?

Businesses issue stock to raise capital Advantages of issuing stock: - A Company can raise more capital than it could borrow. - A Company does not have to make periodic interest payments to creditors. - A Company does not have to make principal payments. Disadvantages of Issuing Stock: - The principal owners have to share their ownership with other shareholders. - Shareholders have a voice in policies that affect the company operations. Source Qwoter.com


How do you determine the value of an old burial insurance policy from Southern Bankers Insurance Company?

You could submit a claim but that usually means dying first. Short of dying, you could surrender the policy for its surrender value. The surrender value depends on many things but it starts a zero when the policy is bought and grows to the face amount as the policy ages. The hardcopy of the policy should show a face amount but will likely also include a schedule for the surrender value. If the hardcopy of the policy can't be located, a call to the company is in order.


What is the Annual Report of a Company?

The importance of annual report of company for the firm is huge you should good knowledge and skills in the annual report creation that contain company activities from the past year and it could bring you a lot of benefits if it's done in an effective and professional way. Annual report of company will help present your strategies and development to your company's shareholders. Annual report is also helpful to set realistic goals for the company.


Where could one go online for information regarding cashing in one's endowment policy?

Before jumping around on the Internet to cash in an endowment policy, beneficiaries should check with the issuing company first. If processed incorrectly, a beneficiary could lose a large percentage.

Related questions

How do shareholders influence a business?

A Public limited company cannot survive without shareholders! The amount invested is HUGE!! More than they could possibly invest by their own means. If a lot of people invest in a company, it does improve the reputation and goodwill of the firm. Quite obviously... people wouldn't invest if they didn't think they'd get good returns! However, too many shares being sold could lead to over capitalisation of the firm.


How could you assess a company's best managed financial standpoint?

The assessment of a company's best managed financial standpoint is based on its return on equity. It shows if the shareholders of the company are getting profits.


Who are users of financial statement?

it could be: shareholders (to know about how there company is performing) banks( to provide loans for example) suppliers(to know whether it's worthwhile to supply to this company) potential shareholders (to decide whether it's worthwhile to invest in this company)


Why do businesses want to grow?

Because their owners (shareholders) want to get a return (an increase) on the value of their investment each year. This means the company needs to generate more profit each year. The shareholders will usually elect a board of directors who are most likely to achieve this growth in profit - at an acceptable level of risk. A company's shareholders could however decide they want a low growth/low risk strategy.


Why do companies issue stock?

Businesses issue stock to raise capital Advantages of issuing stock: - A Company can raise more capital than it could borrow. - A Company does not have to make periodic interest payments to creditors. - A Company does not have to make principal payments. Disadvantages of Issuing Stock: - The principal owners have to share their ownership with other shareholders. - Shareholders have a voice in policies that affect the company operations. Source Qwoter.com


What would you consider an internal audience for a company?

I would consider all employees within a company as the internal audience. You could also include shareholders which are not specifically employees put would be considered as internal.


What are the risks of being a stockholder?

10 common risks associated with shareholders agreements.1. Failing to have a Shareholders AgreementWhether a person or entity is becoming a shareholder in a new company or an existing company, they should be mindful to check whether there is a shareholders agreement.In the absence of a shareholders agreement, shareholders will need to rely solely on the company’s constitution to set out all of the administrative processes – if the constitution has been prepared in a mostly pro-forma or standard form, it is unlikely that it will provide all that is needed.2. New ShareholdersIt is important to ensure that a company’s constitution or a shareholders agreement provides that any new shareholder entering into an existing company is obliged to enter into and be bound by the terms of the shareholders agreement.There is more than one way that this can be done. The constitution can provide that the company only registers a transfer of shares if a deed of accession has been signed by the incoming shareholder and provided to the company.3. Restrictions on Company’s PowersThe terms of a shareholders agreement cannot act to limit the corporate powers of a company under the Corporations Act 2001 (Cth) (Act). If a term within a shareholders agreement is deemed to limit such powers, then it is likely to be void.Anyone involved in the preparation of a shareholders agreement should be mindful of the powers given to a company under the Act when completing a shareholders agreement.4. Restraint of TradeIt is common with small to medium sized companies, where the shareholders also hold director or employee positions, that restrictions are included within the shareholders agreement on the types of activities and work that the shareholders can complete, to limit the risk of any shareholder undertaking activities that compete with the company – this can be both whilst the person remains a shareholder and for a period after they cease to be a shareholder.Without the inclusion of this type of clause, there is a risk of dispute particularly when a person ceases to be a shareholder and seeks to start or work in a competing business. Any clause restraining a person’s activities needs to be carefully drafted to ensure that the correct entities are restrained, and so that the clause is enforceable if needed.5. Management Decisions and Shareholder ObligationsDepending on the type, size and nature of the company the shareholders may wish to retain a level of control and involvement in the management and operation of the company.Shareholder involvement in the company’s management is unlikely to be addressed in a standard constitution, so if this is a specific concern of a particular shareholder or group of shareholders, it needs to be set out in a shareholders agreement.There are different ways of addressing this issue within a shareholders agreement, none of which are standard and will depend on the nature of the company’s business and the expectations of the shareholders.6. FinancialsIf any shareholder or prospective shareholder wants to have control over certain financial decisions or be provided with business plans or other financial projections at any time, a standard constitution would not generally include this right. A shareholders agreement can be used to state which decisions need to be referred to the shareholders, eg for decisions with a liability or cost in excess of a set amount.If the shareholders want these types of rights in relation to decisions, but a shareholders agreement has not been entered into or has not been drafted specifically to cover off on this type of concern, then the company could make decisions that are not in line with the intentions of the shareholders.7. CapitalThere is more than one circumstance in which capital investment becomes a consideration for a company.Where there is a start-up company, it will usually seek initial funding, which is generally as cash in exchange for the issue of shares. However, it is important to remember that not all shareholders provide cash as consideration for shares.8. Issuing or Transferring SharesA company’s constitution often details the process for issuing or transferring shares. Depending on the provisions included in the constitution together with the circumstances of the shareholders involved, it may be that the process needs to be further set out, or additional circumstances may need to be provided for in a shareholders agreement.9. Dispute Resolution:One of the main advantages of a shareholders agreement is to include a process to resolve a deadlock or dispute between shareholders.10. Consistency with Constitution:It is important that any shareholders agreement is drafted with careful consideration of the matters that are addressed within the company’s constitution, so that the two documents governing the company’s affairs and the relationship between the shareholders are not inconsistent with each other.


Is it illegal to date someone at work?

Illegal? No. A violation of company policy and possible cause for termination? It could be. It depends on the company. Check with your company's HR department.


What is the purpose of the accident plan?

It could be an insurance policy taken out with an insurance company in case of an accident.


What is the difference between policy and directive?

A policy is a set of rules that is followed within a company. A directive is a rule that a company may make to correct a part of the policy that is not being followed properly. This could include disciplinary actions taken when policies are not being followed.


What factors can influence a company's primary goal of maximizing shareholder wealth?

There are many. Laws are one major factor - a company could often provide more wealth to the shareholders if it skirted a few laws here and there. A company may have adopted some charitable cause in the name of social responsibility that reduces shareholder wealth. A company might decide not to produce a certain type of profitable product because they have some objection to it (could be dangerous to children, is not environmentally friendly, etc.) A company might decide to remain "Made in the USA" for patriotic reasons instead of reducing cost by producing overseas.


Who is the parent company of CNBC?

CNBC, along with NBC and MSNBC, are all owned by Comcast and its media subsidiary, NBC Universal.