we are going to explain the role of shareholders‚ directors and partners in the different types of business; and then we will see the importance of legal constraints on decision making within business organisations. 1- THE ROLE OF THE SHAREHOLDERS: There are no shares in the sole trader and partnership ownership; that is why shareholders do not apply in these two types of businesses. In Private Limited Companies‚ there must be at least two shareholders but no maximum number. The principal
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Walmart Stakeholders 3/18/2013 Walmart is one of the largest retailers in the world that is steadily growing and seeking to develop ways of meeting the needs of their stakeholders. In our textbook‚ stakeholders are defined as “people who stand to gain or lose by the policies and activities of a business and whose concerns the business needs to address” (Nickels‚ McHugh & McHugh‚ 2009). Walmart has several internal and external stakeholders that keep the business at the top of the retail
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Memo to Shareholders – Carpino Company To: Shareholders‚ Carpino Company Inc. From: Subject: First Year Performance of Carpino Company Introduction Upon completion of Carpino Company’s first year of business‚ it is with great satisfaction that I present to you the year end Cash Flow Statement and analysis for the period ended January 31‚ 2007. You will notice the statement as presented shows in detail the various operating‚ investing‚ and financing activities of the organization. Analysis
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Chapter 158 Distributions to Shareholders: Dividends and Repurchases ANSWERS TO END-OF-CHAPTER QUESTIONS 158-1 a. The optimal distribution policy is one that strikes a balance between dividend yield and capital gains so that the firm’s stock price is maximized. b. The dividend irrelevance theory holds that dividend policy has no effect on either the price of a firm’s stock or its cost of capital. The principal proponents of this view are Merton Miller and Franco Modigliani (MM). They
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2.6 Is Shareholder Value Maximization the Right Objective? In their widely cited book The Value Imperative—Managing for Superior Shareholder Returns‚ McTaggart‚ Kontes‚ and Mankins (1994) write‚ Maximizing shareholder value is not an abstract‚ shortsighted‚ impractical‚ or even‚ some might think‚ sinister objective. On the contrary‚ it is a concrete‚ future-oriented‚ pragmatic‚ and worthy objective‚ the pursuit of which motivates and enables managers to make substantially better strategic and organizational
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Stakeholders As argued by Sharma & Starik (12) a stake holder is that which is affected by the operation of an organization entirely or can affect the organization directly. The organization can be of any kind meant to realize certain goals by the society. Stake holders are tenet to the development and performance of the organization without which the organization either cease or collapse completely. As such any organization must strive to identify its stakeholders and their specific needs
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One of the most widely used concepts in finance is that shareholders require a risk premium over bond yields to bear the additional risks of equity investments. While models such as the two-parameter capital asset pricing model (CAPM) or arbitrage pricing theory offer explicit methods for varying risk premia across securities‚ the models are invariably linked to some underlying market (or factor-specific) risk premium. Unfortunately‚ the theortical models provide limited practical advice on establishing
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| SHAREHOLDERS WEALTH MAXIMIZATION | 10/11/2010 About GSK - Our company Established in the year 1924 in India GlaxoSmithKline Pharmaceuticals Ltd. (GSK Rx India) is one of the oldest pharmaceuticals company and employs over 3500 people. Globally‚ we are a USD 45 billion‚ leading‚ research-based healthcare and pharmaceutical company. In India‚ we are one of the market leaders with a turnover of Rs. 1860 crore and a share of 5.2 per cent*. At GSK‚ our mission is to improve the quality of
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Stakeholders The world ’ ’stakeholder ’ ’ was first used in an internal memorandum at the Stanford Research Institute in 1963. It refers to "those groups without whose support the organizations would cease to exist". There are two types of stakeholders‚ primary and secondary. The first type are those that engage in economic transactions with the business - stockholders‚ customers‚ suppliers‚ creditors and employees. The second type are those who do not engaged in direct economic exchange with
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finance managers can‚ in practice‚ contribute to the maximisation of shareholder wealth”. This essay will examine how finance managers in day to day practice can participate in the aid of increasing maximum shareholder wealth. The focus point of this is based on the financial managers themselves‚ how they can manipulate and change things in order to increase shareholder wealth using certain tools and methods of analysis. Shareholders are deemed as the owners of the business. Their main aim is to
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