answersLogoWhite

0


Want this question answered?

Be notified when an answer is posted

Add your answer:

Earn +20 pts
Q: Why might one expect managers to act in shareholders interests Give some reasons?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Continue Learning about Management

What should the management of Sports Products Inc pursue as its overriding?

Current theory asserts that the firms' proper goal is to maximize shareholders' wealth, as measured by the market price of the firm's stock. A firm's stock price reflects the timing, size and risk of the cash flow that investors expect a firm to generate over time. So financial managers should undertake only those actions that they expect will increase the value of the firm's future cash flow. Theorical and empirical arguments support the assertion that managers should focus on maximization shareholder wealth. Shareholders of a firm are sometimes called residual claimants, meaning that they have claims only on any of the firm's cash flows that remain after employees, suppliers, creditors, governments and other stakeholders are paid in full. As you see, shareholders stand at the end of this line so if the firm cannot pay the stakeholders first, shareholders receive nothing! Shareholders also bear most of the risk of running the firm. So if firms did not manage to maximize shareholders wealth, investors would have little incentive to accept the risks necessary for a business to succeed.


How much do produce managers make?

dont expect a lot from certain stores, as they are growing and will refuse to give you what you are worth . They will cycle through managers and more often so assistant managers(natural grocers) due to overworking, no overtime and hiring anyone who will fit the bill.


If planning is so crucial why do managers choose not to do it?

Planning is so crucial and sadly most managers choose not to do it. Most of them work with assumptions while others expect their subordinates to do all the donkey work. Planning helps run an organization efficiently.


What if your boss is a good manager?

We expect bosses to be good managers; that's what they DO. The worst bosses are people who have neither good technical skills nor any management ability.


The main way hr managers contribure to increasing the value of their firm is by what?

HR managers contribute in the increasing of the value of their firm by hiring the qualified staff, training them according to the needs of the firm as well as maintaining their safety and health. Also, they need to explain to the staff the compensation benefits that they expect in order to get motivated in their work.

Related questions

Why is cost associated with internal equity?

nIf managers are investing shareholders' funds, shareholders will expect to earn their required rate of return nFor internal equity, the required rates of return are equivalent to the cost as no issue costs are involved


What are the sole objectives of shareholder in a business?

The sole objectives of the shareholders of the company is to guide/motivate the co. to initiate measures that will help them to accelerate business activity vis a vis expansion and/or switching over to new activities.Though shareholders expect declaration about hefty dividends, they should rather act as watchdogs to protect their interests and company's interest as well.


What should the management of Sports Products Inc pursue as its overriding?

Current theory asserts that the firms' proper goal is to maximize shareholders' wealth, as measured by the market price of the firm's stock. A firm's stock price reflects the timing, size and risk of the cash flow that investors expect a firm to generate over time. So financial managers should undertake only those actions that they expect will increase the value of the firm's future cash flow. Theorical and empirical arguments support the assertion that managers should focus on maximization shareholder wealth. Shareholders of a firm are sometimes called residual claimants, meaning that they have claims only on any of the firm's cash flows that remain after employees, suppliers, creditors, governments and other stakeholders are paid in full. As you see, shareholders stand at the end of this line so if the firm cannot pay the stakeholders first, shareholders receive nothing! Shareholders also bear most of the risk of running the firm. So if firms did not manage to maximize shareholders wealth, investors would have little incentive to accept the risks necessary for a business to succeed.


Dividend Payments?

Corporations have shareholders that invest in their business and expect a portion of the business's profits in return. Dividend payments are part of the shareholders' returns for investing in a business. Corporations have a choice to either reinvest their profits in shares, or keep a portion of the profits and paying shareholders dividends.


What can managers expect from making IT investments on the basis of an immediate need that is isolated from business strategy?

Competitive advantage


What did factory managers expect women to do when men returned home from the war?

give their jobs to returning men


What kind of math questions should you expect on the Batrus Hollweg test for restaurant managers?

multiple choice...


What can managers expect from making IT investments on the basis of immediate need that is isolated from business strategy?

Competitive advantage


What factory managers expect women to do when men returned home from the war?

give their jobs to returning men


Does Wayne Rooney have any Hobbies or outside interests?

Probably, yes. What, you expect me to tell you his hobbies?


How much do produce managers make?

dont expect a lot from certain stores, as they are growing and will refuse to give you what you are worth . They will cycle through managers and more often so assistant managers(natural grocers) due to overworking, no overtime and hiring anyone who will fit the bill.


What should you expect from a political party?

Government of the people, for the people, by the people. And in the best interests of ALL people. Dream on !