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agency
The primary reason for the divergence of objectives between managers and shareholders has been attributed to separation of ownership (shareholders) and control (management) in corporations. As a consequence, agency problems, or principal-agent conflicts exist in the firm.
what is formal and informal shareholders agreement
Shareholders are the people who invest from in the corporation by buying stock.
A Business analyst works with individual shareholders of a company to help them understand how the company they are invested in works. They act as an in between between companies and their shareholders.
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.
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...
if the creditors are not paid in time.
yes ofcourse take a look at the stewardship theory and the stakeholder theory..there is conflict between having an obligation to society/stakeholders or shareholders.
agency
the difference between Profit maximisation and share price maximisation
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.
Both profit maximization and wealth maximization have the objective of increasing the net worth.
The primary reason for the divergence of objectives between managers and shareholders has been attributed to separation of ownership (shareholders) and control (management) in corporations. As a consequence, agency problems, or principal-agent conflicts exist in the firm.
report and try to make adjustment for both
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.
Joseph L. Serra has written: 'Case study of conflict between service managers and senior education managers within two health authorities in the National Health Service'