Managers are often expected to act in shareholders' interests because they are typically incentivized through compensation structures that include bonuses, stock options, and performance-based rewards tied to the company's financial performance. Additionally, shareholders have the power to hire and fire managers, creating accountability. Furthermore, aligning the interests of managers and shareholders can lead to long-term business success, enhancing the company's value and, consequently, the managers' personal wealth. Lastly, a strong corporate governance framework encourages managers to prioritize shareholder interests.
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.
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.
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.
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.
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.
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
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.
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.
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.
multiple choice...
give their jobs to returning men
give their jobs to returning men
Competitive advantage
Competitive advantage
The four key stakeholders in a company typically include shareholders, employees, customers, and suppliers. Shareholders invest capital and expect a return on their investment. Employees contribute their skills and labor, seeking fair compensation and job security. Customers drive revenue by purchasing products or services, while suppliers provide the necessary materials and resources for production. Each stakeholder group has distinct interests and influences the company's operations and strategies.
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.
Probably, yes. What, you expect me to tell you his hobbies?