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Shareholders are actually owners of the company in which they hold stock in. All decisions should be made with the consideration of maximizing shareholders wealth. It is not to just increase the size of the company or to see that executives get rich but rather to maximize the return for shareholders/owners of the corporation.
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Why is wealth an abstract noun?
The noun wealth is an abstract noun because wealth is not a physical thing. Wealth is a sum total of a person's money or property, their financial wherewithal, or even a person's good characteristics, abilities, positive relationships, etc.
Explain the difference between price consumption curve and a demand curve?
A price consumption curve identifies the utility maximizing combinations of two goods as the price of one of the goods changes. When the price of one of the goods declines, the budget line will pivot outwards, and a new utility maximizing bundle will be chosen. The price consumption curve connects all such bundles. A demand curve is a graphical relationship between the price of a good and the (utility maximizing) quantity demanded of a good, all else the same. Price is plotted on the vertical axis and quantity demanded on the horizontal axis.
How is it possible that Poverty and Inequality continues in a supposed wealth producing world?
Because the wealth is given to very few. It being human nature not to share something good, inequality is created and since the wealth is never given to the poor, so is poverty.
Why do people who carefully plan their finances usually have so much more wealth and economic security?
Although wealth and security are partly the result of good luck, careful planning and hard work are more important.
When is the profit-maximizing quantity of output reached?
To maximise profits, the quantity of output reached (supply) must be lesser than the demand, increasing the value and consequently the price of a certain good or service.
Why maximizing shareholers' wealth is always the goal of a firm instead of maximizing profits of the firm's?
The foundation of a firm is the investment, the wealth of its promoters and more importantly the share holders. Share holders have invested their money in the firm basing on the confidence they have on the firm and believing that their investment will be safe and will fetch good reasons. Once their trust is shaken, it will ruin the firm. On account of all these, the primary goal of a firm is to maximise the share holders' wealth.
What moral philosophy was Jeremy Bentham a proponent of?
Jeremy Bentham was a proponent of utilitarianism, which is a moral philosophy that focuses on maximizing overall happiness and minimizing suffering. He believed that the right course of action is the one that produces the greatest amount of good for the greatest number of people.
What was Andrew Carnegie's philosophy?
Andrew Carnegie believed in the philosophy of the "Gospel of Wealth," which argued that the wealthy had a moral obligation to use their wealth to benefit society. He believed in philanthropy and giving back to the community, focusing on funding libraries, universities, and cultural institutions. Carnegie held the belief that the accumulation of wealth was not an end in itself, but a means to promote the greater good.
Why does health is wealth?
If you have the good health you can earn the wealth because when your health is not good you can not even go out and earn money. so, keep a good health then you will have a good wealth.
What are the roles played by shareholders directors and auditors in terms of interacting with published financial statements of the company?
Shareholders are the owners. They are very interested in seeing if their investment is producing good returns. Their role will be to analyse, and protect their interests.Directors are appointed by the shareholders to run the company. They are answerable to the shareholders for company performance. Their jobs and future depend on giving shareholders what they want, normally increased wealth, but ethical considerations are increasingly important. Their role is caretaking and maximizing! They will know what the financial statements say before they are published.Auditors generally have an impassionate relationship with the financial statements. They probably produced them anyway, and would have taken an objective view when doing so. Naturally they would be happy to see their client (the company) succeed, and they would be concerned if they see a decline in profitabilty or sustainability of the company. However, auditors have no responsibility to share in managing the company. This is the sole prerogative of the directors together with their appointed managers. Their interaction with the statements may be one of 'pride of accomplishment'! and may be to hope to be appointed again (or not!) next year!
Will managers always make decisions that will be in the best interests of shareholders?
No. Their pay arrangement can give you a good indication as to how well they will act on the shareholders' behalf.
The goddess of wealth and good fortune?
The goddess of wealth and good fortune is goddess Laxmi.
What describes Andrew Carnegie and philosophy that is the duty of the rich to use their wealth for the common good?
Andrew Carnegie believed in the concept of philanthropy and that it was the duty of the rich to use their wealth to benefit society through charitable giving. This philosophy is often summarized as "the Gospel of Wealth," where wealthy individuals have a responsibility to use their resources to improve the welfare of others and support social progress. Carnegie himself exemplified this belief through his extensive philanthropic efforts, such as funding libraries, schools, and other public institutions.
How does satisficing decision differ from maximizing decision?
Satisficing decision means accepting a satisfactory, or good, result. Maximizing decision means not accepting any result except the best.
What is the origin of the saying the greater good?
The saying "the greater good" is often associated with the concept of utilitarianism, which suggests that actions should be taken for the benefit of the greatest number of people. It has roots in philosophy, particularly the works of Jeremy Bentham and John Stuart Mill, who explored the idea of maximizing overall happiness and well-being in society.
Martin Luther King Jr philosophy of non volience?
M.L.K's philosophy is about non violence and it is a philosophy that is hard to put in action, but if you can you are a good person with a good heart.
What is a good sentence with the word philosophy in the sentence?
My philosophy is called 'The Golden Rule'.
