LEarNING OBJECtIVES After studying this chapter‚ you should understand: LO1 The basic types of financial management decisions and the role of the financial manager. LO2 The goal of financial management. LO3 The financial implications of the different forms of business organization. LO4 The conflicts of interest that can arise between managers and owners. I NTRODUCTION TO CORPORATE FINANCE mortgages getting into financial difficulties and 1 Overview of Corporate Finance Pa rt 1 IN 2007‚ A
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Roles of Limited Liability Corporations and Partnerships In today’s society people are establishing new businesses with different business structures. The individuals need to check with the state they reside to see if the particular entity is acceptable. The paragraphs below will explain the roles of limited liability corporations and partnerships. The paper will also explain the business structure that will be more appropriate to use when opening a small business. Limited partnerships (LPs)
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serious lapse in Agency-relationship problem. You are one of the board members of a public listed company. Discuss how‚ you would implement the necessary safeguards to prevent such instances happening in your company. 1.0 Suggestions to resolve Agency relationship problems. An agency relationship arises whenever individuals‚ known as principals‚ hire individuals‚ known as agents‚ to perform services and delegate decision-making authority to the agents. The primary agency relationships in
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PROBLEMS WITH THE AGENCY RELATIONSHIP If you are the sole owner of a business‚ you make the decisions that affect your own well-being. But what if you are a financial manager of a business and you are not the sole owner? In this case‚ you are making decisions for owners other than yourself; you‚ the financial manager‚ are an agent. An agent is a person who acts for—and exerts powers of—another person or group of persons. The person the agent represents is referred to as the principal. The relationship
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A to Z of Limited Liability Partnership A. INTRODUCTION The concept of Limited Liability Partnership (LLP) in India is viewed as an alternative corporate business vehicle that provides the benefits of limited liability and also allows its members the flexibility of organizing their internal structure as a partnership based on a mutually arrived agreement. The revised Bill received the assent of the President of India on 7‚ January 2009. LLP is a body corporate formed and incorporated under
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for an inter-agency forum on the benefits and barriers to working in partnership. Introduction As a health care adviser I believe in Collaboration of work and creating a positive workforce thinking and practicing an interagency approach towards partnership. I will discuss the advantages and disadvantages as there will be varied skills‚ qualifications and professional bodies within a team to provide an effective partnership. CONTEXT Interagency working: more than one agency working together
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and this will lead to serious social problems. To what extent do you agree with this agreement? In recent years‚ IT age has far-reaching influenced a large number of people. It cannot be denied that IT could lead to some serious social problems and paralsing society. I agree with this statement to a certain extent and I will outline why in this essay. There can be no doubt that information technology usually results in paralising society and serious social problems in several
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behind corporate governance 1. Agency problem 2. Stewardship theory 3. Resource dependency theory 4. Stakeholder theory 5. Political theory 6. Transaction cost economics 7. Ethical theory C. Principles of corporate governance D. SOX Act‚ E. Enron Scandal‚ Conclusion I. Introduction: The concept of corporate governance in legal and economic terms is equivalent to “the defense of shareholders”. Corporate governance is the response to typical agency problems between investors and managers
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Agency Problems‚ Auditing‚ and the Theory of the Firm: Some Evidence Author(s): Ross L. Watts and Jerold L. Zimmerman Source: Journal of Law and Economics‚ Vol. 26‚ No. 3‚ (Oct.‚ 1983)‚ pp. 613-633 Published by: The University of Chicago Press Stable URL: http://www.jstor.org/stable/725039 Accessed: 29/06/2008 23:14 Your use of the JSTOR archive indicates your acceptance of JSTOR ’s Terms and Conditions of Use‚ available at http://www.jstor.org/page/info/about/policies/terms.jsp. JSTOR ’s Terms and
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As the world has become more globalized‚ more Americans work for multinational organizations. Working for a global company provides some advantages to you relative to working for a domestic business‚ but it may also lead to some challenges. While each global company is different‚ it helps to weigh the pros and cons of a global culture before accepting a job with a multinational enterprise. Career Opportunities Working for a larger company offers more job opportunities. But a multinational company
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