Corporations are only accountable to shareholders. They do not have social responsibilities. Corporations are only accountable to shareholders. They do not have social responsibilities. Before commencement on making my stand in this topic‚ a clear definition of the aspects of this topic is essential. Firstly‚ a corporation can be define as a legal entity or structure created under authority of the laws of a state‚ consisting of a person or group of persons who become shareholders (All business
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Campo 3/8/2012 BUSN 320 Word Count 392 Maximizing Shareholder Wealth The goal of a firm and a financial manager should involve maximizing the wealth of a firm’s shareholders through achieving the highest possible value for the firm (Block 13). It is a vital task to oversee properly as a financial manager‚ and while the manager cannot directly control the firm’s stock price‚ it can act consistently with the desires of the shareholder. Accounting‚ financial and other irregularities can
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IN YOUR OPINION DYOU THINK SHAREHOLDER ACTIVISM WORKS‚ WHY OR WHY NOT Shareholder Activism refers to a range of actions taken by a shareholder to influence corporate management and board. Actions range from threatening the sale of shares (“exit”)‚ letter writing‚ meetings management‚ to asking questions at shareholders meetings and the use of corporate voting rights. The common definition of a shareholder activist is a shareholder “who tries to change the status quo through the “voice”‚ without
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Maximizing Shareholder Value: The Role of the Financial Manager Today ’s business world shows a huge diversification in the shareholders of one company. In most countries‚ each investor only holds a very small fraction of issued shares by one corporation. This includes also the senior management. Determining the objectives of the firm is not necessarily a straightforward task because the typical firm will have many types of participants. Among these participants are shareholders‚ creditors
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CHAPTER 19 CORPORATIONS 1. – THE NATURE AND CLASSIFICATION OF CORPORATIONS A corporation is a legal entity created and recognized by state law. It can consist of one or two persons identified under a common name. CORPORATE PERSONNEL When an individual purchases a share of stock in a corporation‚ that person becomes a shareholder and owner of the corporation. Shareholder and corporations are liable. THE LIMITED LIABILITY OF SHAREHOLDER One of the key advantages of the corporate forms
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Abstract Maximizing shareholder wealth requires a decisive strategy and a well-developed plan. It allows an investor to consider financial statements and growth strategies in order to establish a course of action. Case in point‚ one major franchising international business bought a well-known global restaurant business. The risks and expected return by these two companies may affect its long-term future goals. A profitable electronics company may lose its primary supplier in a strategic takeover
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to be shareholder wealth maximization which translates to maximizing stock prices. In light of this statement‚ do you think firms have any responsibility to society? BY Akanji Emmanuel olusegun BSU/MS/MBA/08/3104 FACULTY OF MANAGEMENT SCIENCE MASTER OF BUSINESS ADMINISTRATION (MBA) BENUE STATE UNIVERSITY MAKURDI. AUGUST‚2010 1.0 Introduction: The fundamental economic role of business is to make profit and to maximize shareholders wealth
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how corporations have embedded a social responsibility in their mission statements and company objectives. This leaves us with one assertion that is that corporations do have some level of obligation towards society’s morality; however‚ the corporation itself is not a moral agent (Klaus M. Leisinger). The discussion that follows is about corporations being moral agents or otherwise; however I will reach a conclusion that corporations do have an obligation that extends beyond obeying the law; evens
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A social structure is mandatory for the survival of humans. Man’s natural affinity for evil and conflict has been around since the dawn of time - until order was maintained through the introduction of laws. Without law‚ the integrity and stability of society would diminish completely. As a strong advocate of determinism‚ Thomas Hobbes believes that a strict government is the only way to social stability. Hobbes believed that a state of nature - one without a form of government - would essentially
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Advertisers do have a responsibility to society. We are live in a society surrounded by a variety of advertisements. The amount spent alone in advertisement by the top 10 companies in the U.S. cost up to billions of dollars per year. Advertisements can be both beneficial and harmful to viewers. Consumers collect information about a certain product or service through advertisement so advertisers have a responsibility to deliver truthful information to the public. However‚ advertisers frequently
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