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What are some actions stockholders could take to ensure the management interest and those of stockholders coincided?
Wiki User
∙ 12y ago
Sell all of their stocks in corporations in which the interests of management do not coincide with those of the stockholders.
Wiki User
∙ 12y ago
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People or groups with a legitimate interest in a company's actions are called?
Stakeholders.
What is the explanation for the various functions of financial management?
What are the functions of finance? Answer The five basic corporate finance functions are described as those functions related to; 1) raising capital to support company operations and investments (aka, financing functions); 2) selecting those projects based on risk and expected return that are the best use of a company's resources (aka, capital budgeting functions); 3) management of company cash flow and balancing the ratio of debt and equity financing to maximize company value (aka, financial management function); 4) developing a company governance structure to encourage ethical behavior and actions that serve the best interests of its stockholders (aka, corporate governance function); and 5) management of risk exposure to maintain optimum risk-return trade-off that maximizes shareholder value (aka, risk management function)
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.
If a judgment is still accruing interest can a payment be applied to the original amount of the debt stop the agency from adding any more interest?
Your specific question and situation requires a legal opinion. This answer is a general one only. That having been said... Judgments, being legal actions, usually accrue interest according the terms set by the judge when the judgment is granted. So paying the creditor would not stop the interest unless that continency was covered in the disposition.
What does predatory lending mean exactly?
When a lender uses actions to entice a borrower to take out a mortgage that has very high interest rates, fees, or puts the lender at more of an advantage than the borrower.
What are some actions that stockholders can can take to ensure that management's and stockholders' interest are aligned?
Threat of takeover.Managerial compensation: Managerial compensation is constructed not only to retain competent managers, but to align managers' interests with those of stockholders as much as possible.Direct intervention by stock holders: Today, the majority of a company's stock is owned by large institutional investors, such as mutual funds and pensions. These large institutional stockholders have the ability to exert influence on managers and as a result the firms operations.Treat of Firing: If stockholders are unhappy with current management, they can encourage the existing board of directors to change the existing management, or stockholders may even re-elect a new board of directors that will accomplish the task.Threat of takeover: If a stock price deteriorates because of management's inability to run the company effectively, competitors or stockholders may take a controlling interest in the company and bring in their own managers.
What are some actions that stockholders can take to ensure that management's and stockholders' interestes are aligned?
Threat of takeover.Managerial compensation: Managerial compensation is constructed not only to retain competent managers, but to align managers' interests with those of stockholders as much as possible.Direct intervention by stock holders: Today, the majority of a company's stock is owned by large institutional investors, such as mutual funds and pensions. These large institutional stockholders have the ability to exert influence on managers and as a result the firms operations.Treat of Firing: If stockholders are unhappy with current management, they can encourage the existing board of directors to change the existing management, or stockholders may even re-elect a new board of directors that will accomplish the task.Threat of takeover: If a stock price deteriorates because of management's inability to run the company effectively, competitors or stockholders may take a controlling interest in the company and bring in their own managers.
Why is it necessary for a company to have health and safety policy?
A Policy is a statement of the expectations of top management and the stockholders. Without a policy, middle management lacks direction and may not take appropriate actions to maintain adequate healt and safety procedures and conditions.
What has the author Elizabeth J Boros written?
Elizabeth J. Boros has written: 'Minority shareholders' remedies' -- subject(s): Legal status, laws, Minority stockholders, Remedies (Law), Stockholders' derivative actions
What are the basis on which business is established or exist?
the impact of management decision is not just public responsibility but is inextricably inter cover with management responsibility to the enterprises. still it is her responsibility of the management to the public interest as such this is based on the fact that the enterprise is an organ of society and that it actions have a dissif on the social scene
What actions can auditors take if management refuses to provide a letter of representation?
What actions can auditors take if management refuse to sign letter of representation
Can you report your supervisor to the company management if he is going against the company interest in his actions?
Some concerns are so critical that the need to make someone aware of the problem. If our supervisor behavior could endanger to customers,employees or the business, then I have been obligation to tell the management.
As a good company employee can you report your supervisor to the company management if he or she is going against the company interest in his or her actions?
Of course you can ! Just because they're a supervisor - does not mean they are exempt from following company policy.
Elements of F W Taylor's Scientific Management?
element of scientific management:1. labor2. position3. selection4. actions and decisions5. management
How to Buy a company in chapter 11?
All major actions of companies in Chapter 11 have to be approved by the bankruptcy court, this would include the sale of the company. Generally, a potential buyer would negotiate with the management of the company, the stockholders and the lenders and come up with a plan that would be filed with the court for approval. The terms of the plan would generally be that the stockholders get little or nothing, the lenders would get a small payment and possibly debt in the new company and the buyer would have to invest some money in the company.
People or groups with a legitimate interest in a company's actions are called?
Stakeholders.
What entities can commit criminal activities?
Criminal activities can be committed by individuals against a business as well as by businesses through the actions of their employees against consumers, the general public, and/or stockholders.
