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What are some actions an entrenched management might take that would harm shareholders?
Wiki User
∙ 12y ago
REFERENCE:Brigham and Ehrhardt (2009) Financial Management Theory and
Practice (13th Ed) 13.4 Managerial Behavior and Shareholder Wealth, page 531 (Retrieved onJuly 23, 2011)
Wiki User
∙ 12y ago
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What do you mean by maximizing value of the shareholder?
This management principle, also known undervalue based management, states that management should first and foremost consider the interests of shareholders in its business decisions. Although this is built into the legal premise of a publicly traded company, this concept is usually highlighted in opposition to alleged examples of CEO's and other management actions which enrich themselves at the expense of shareholders. Examples of this include acquisitions which are dilutive to shareholders, that is, they may cause the combined company to have twice the profits for example but these might have to be split amongst three times the shareholders.
Which of these actions might members of management take to generate more capital to increase profit?
To find more efficient ways to produce...
What is amoral management?
Managerial behaviors that are indifferent to ethical consideration --as through different standards of conduct apply to business then to aspect of life. amoral management and employ seem to lake awareness of moral issues and act with no thought for the impact that their actions might have on others...
How do risk management and quality management policies affect stakeholders?
One might find this answer on a site such as Forbes. To find out how risk management and quality management policies affect stakeholders one also might inquire in to the response of a stock broker.
When is risk management used?
Risk management is used any time you might feel worried or endangered.
What do you mean by maximizing value of the shareholder?
This management principle, also known undervalue based management, states that management should first and foremost consider the interests of shareholders in its business decisions. Although this is built into the legal premise of a publicly traded company, this concept is usually highlighted in opposition to alleged examples of CEO's and other management actions which enrich themselves at the expense of shareholders. Examples of this include acquisitions which are dilutive to shareholders, that is, they may cause the combined company to have twice the profits for example but these might have to be split amongst three times the shareholders.
If shareholders are dissatisfied what action can they take?
The simplest thing shareholders can do is sell their shares. This is called voting with your feet or voting with your money. Shareholders can also petition to have items placed on the annual shareholder ballot. Shareholders can group together to vote out ineffective board members, though there are limits on how they can cooperate.
Which of these actions might members of management take to generate more capital to increase profit?
To find more efficient ways to produce...
Would socially responsible actions from a corporation make it more attractive to potential shareholders?
Sure it would Think of it this way. If the socially responsible actions that the corporation does effect the local community's views on it in a positive manner, then it would be likely that customers, suppliers and other stakeholders may have more of an interest in the business. Customers for example might want to buy from them, and suppliers might want to have a relationship with the corporation. From this prosperity going on, it's likely shareholders might want more shares to increase their profit, or new people just by shares. Hope that answered your question
What two places might business find fiance?
Banks Shareholders
What is amoral management?
Managerial behaviors that are indifferent to ethical consideration --as through different standards of conduct apply to business then to aspect of life. amoral management and employ seem to lake awareness of moral issues and act with no thought for the impact that their actions might have on others...
Who might be the stakeholders of an internet banking system?
Customer Colleagues (or competitors) Community Shareholders Government Society
Why might an organisation employ change management consultants?
There are many reasons why an organization employ might change management consultants. An organization employ might change management consultants if the management consultant they first hired was not properly helping the organization solve business problems.
Why were U.S. officials worried by Tecumseh's actions?
Tecumseh's actions might have created an Indian confederation.
How might creditors use this information that contained in financial statements?
To improve the company's performance in other to maximize shareholders wealth
How do risk management and quality management policies affect stakeholders?
One might find this answer on a site such as Forbes. To find out how risk management and quality management policies affect stakeholders one also might inquire in to the response of a stock broker.
How might Lyndon Johnson's personal and political experiences might have influenced his actions as president?
Penis
