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How managers can be motivated to act in the shareholders' interest?
Profit sharing, the more money the manager makes, the more the shareholders make.
How can managers be encouraged to act in shareholders best interest?
Managers can be encouraged to act in their shareholders best interest by linking their pay to the stock price. When they are motivated by compensation then they will do things to make the share price increase.
Do you earn interest on stocks?
Yes, you can earn interest on stocks through dividends, which are payments made by companies to their shareholders as a portion of their profits.
What can be done to make the functions of compensation committees consistent with shareholders interest?
Well that was a confusing sentance
What is the difference between dividend and interest?
Dividends are payments made by a company to its shareholders as a share of its profits, while interest is the money paid by a borrower to a lender for the use of borrowed funds.
Residual Interest in a corporation belongs to?
The shareholders.
How managers can be motivated to act in the shareholders' interest?
Profit sharing, the more money the manager makes, the more the shareholders make.
How can managers be encouraged to act in shareholders best interest?
Managers can be encouraged to act in their shareholders best interest by linking their pay to the stock price. When they are motivated by compensation then they will do things to make the share price increase.
What is financial gearing?
It is the relationship between shareholders equity and fixed interest debt.
Do you earn interest on stocks?
Yes, you can earn interest on stocks through dividends, which are payments made by companies to their shareholders as a portion of their profits.
What can be done to make the functions of compensation committees consistent with shareholders interest?
Well that was a confusing sentance
What is the difference between book value and shareholders' equity in a company's financial statements?
Book value is the value of a company's assets minus its liabilities, while shareholders' equity is the amount of a company's assets that belong to its shareholders after all liabilities are paid off. In other words, book value is a measure of a company's net worth based on its balance sheet, while shareholders' equity represents the ownership interest of the shareholders in the company.
What is the difference between dividend and interest?
Dividends are payments made by a company to its shareholders as a share of its profits, while interest is the money paid by a borrower to a lender for the use of borrowed funds.
Is the share holder and stake holder are same?
No, shareholders and stakeholders are not the same. Shareholders are individuals or entities that own shares in a company, giving them a financial interest in its performance. Stakeholders, on the other hand, encompass a broader group that includes anyone affected by the company's actions, such as employees, customers, suppliers, and the community. While all shareholders are stakeholders, not all stakeholders are shareholders.
Similarities between shareholders and debenture holders?
Both shareholders and debenture holders are stakeholders in a company, but they hold different types of financial interests. Shareholders own equity in the company and can benefit from profits through dividends and capital appreciation, while debenture holders are creditors who lend money and receive fixed interest payments. Both groups have a vested interest in the company's performance, but they differ in their claims on assets and priority in case of liquidation, with debenture holders typically having a higher claim than shareholders. Additionally, both can influence company decisions, though shareholders usually have more voting rights.
In corporation what team group has the ultimate suspilibity of protecting and management the stocks holder interest?
The Board of Directors, who are the representatives of the shareholders.
What is the difference between shareholders' equity and book value in a company's financial statements?
Shareholders' equity represents the total value of a company's assets that belong to its shareholders, while book value is the value of a company's assets minus its liabilities as reported on the balance sheet. In essence, shareholders' equity is the total ownership interest in the company, while book value is a measure of the company's net worth.
