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What are the mechanisms to ensure that managers act in the best interest of the shareholders?
To ensure that managers act in the best interest of shareholders, companies often implement performance-based compensation schemes, such as stock options or bonuses tied to financial metrics. Additionally, corporate governance structures, including a strong board of directors and independent audit committees, help oversee managerial decisions and hold them accountable. Shareholder activism, where investors voice their concerns or push for changes, also serves as a mechanism to align managerial actions with shareholder interests. Lastly, regular financial reporting and transparency promote accountability and enable shareholders to monitor management performance.
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What are control mechanisms in a business?
Control mechanisms are things managers establish to ensure that their operations don't stray too far from their business objectives. For instance, budgets are considered a control mechanism.
How do managers ensure the business runs smoothly?
Being managers is a prized pursuit
What are the responsibilities of wealth managers?
Wealth managers are responsible for providing advice to their clients. They provide information about portfolios strategies for individuals who want to ensure they maximize their wealth.
How can one ensure they get the lowest interest rate on their mortgage?
One can ensure they get the lowest interest rate on their mortgage by asking on various websites like Realtor or Bankrate. One could also go to a local bank and ask for information in there.
Explain why the disclosure of related party transaction and relationship may be important?
To ensure that the management of company does not act in prejudiced manner to the shareholders of the company. It is more an ethical corporate governance principles.
What advantage agency theory?
Agency theory helps to align the interests of principals (shareholders) and agents (managers) by providing incentives for the agent to act in the best interest of the principal. Through mechanisms such as performance-based compensation and monitoring, agency theory aims to reduce agency conflicts and ensure that managers make decisions that maximize shareholder value. Additionally, agency theory provides a framework for understanding the relationships and responsibilities between principals and agents in a business setting.
What are control mechanisms in a business?
Control mechanisms are things managers establish to ensure that their operations don't stray too far from their business objectives. For instance, budgets are considered a control mechanism.
What is the relationship between shareholders and managers?
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.
How has the agency theory been described?
agency theory is to help devise techniques for describing the conflict inherent in the principal-agent relationship and controlling the situations so that the agent, acting from self-interest, does as little harm as possible to the principal's interest
How do managers ensure the business runs smoothly?
Being managers is a prized pursuit
What is the difference between internal and external stakeholders in a table?
Stakeholders are people who have a vested interest in the company. Internal stakeholders include Employees, Managers, Owners/Shareholders. They are all effected by wages and job stability. Managers may get bonuses so they want the business to be very successful. Owners/Shareholders want the best for the company so they make more money. They work for the busines directly and if something happens to the company they will be effected. External stakeholders include Customers, Suppliers, Government. They are involved with the company but not employed directly by the company. Customers are interested in prices and quality of the product. Suppliers are intersted in the success and stability of the company so they can ensure they will have a customer in the future. The Government is interested as company's (especially large ones) pay taxes and emply people.
Managers basic responsibility?
The basic responsibility of managers is to ensure that their respective departments are working properly. Managers will be responsible for the running of the organization.
How does a Shareholders Agreement protect minority shareholders in India?
A Shareholders Agreement protects minority shareholders in India by including provisions that prevent majority shareholders from making unilateral decisions that could harm minority interests. This can include veto rights on certain decisions, special voting requirements, and clauses that ensure minority shareholders have a say in key company decisions. Additionally, it may include tag-along rights, allowing minority shareholders to sell their shares under the same conditions as majority shareholders if a major sale occurs.
What is the key function of audit committees?
They ensure that boards of directors fulfill their financial and fiduciary responsibilities to shareholders.
The provision of mechanisms for process synchronization?
Process synchronization mechanisms ensure that multiple processes or threads can coordinate and communicate effectively to avoid conflicts and data corruption. Common mechanisms include semaphores, mutex locks, and condition variables, which help manage access to shared resources and ensure that processes synchronize their activities effectively. These mechanisms are crucial for maintaining data integrity and preventing race conditions in concurrent programs.
What are the responsibilities of wealth managers?
Wealth managers are responsible for providing advice to their clients. They provide information about portfolios strategies for individuals who want to ensure they maximize their wealth.
What do managers do in a company?
Managers set the goals for the people under him/her to complete. Then after doing so organize and ensure that the tasks get complete via open communication and direct orders.
