that do not result directly in profits‚ for example by sponsorship of sporting events of the opera or other entertainment. Do these projects contradict the goal of maximization of shareholder wealth? Why or why not? Answer: Participating in programs that are socially responsible does not contradict the goal of maximization of shareholder wealth. Having a good reputation from your local community is very important for sustaining a business. Although it remains true that spending on social programs
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“Greed is good. Greed is right. Greed works.” (Gordo Gecko). Taking this particular belief system into consideration‚ it is evident that from an economic perspective‚ acting according to self-interest within a corporate environment‚ in turn significantly benefits the public. Enron however is a picture-perfect example of excessive greed not bringing about the above stated benefits to employees and society. Immoral behaviour and unethical leadership ultimately resulted in ethical scandals‚ major financial
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What exactly does SMEs mean? SMEs mean small-medium enterprises. How many employees’ should a company have to be considered an SME? According to http://www.gdrc.org/sustbiz/what-are-smes.html small and medium enterprises should consist of at least 200 people for it to be a small and medium enterprise. SMEs success is dependent on good staff management. Because without good staff members how will you run your enterprise. These days enterprises hire good staff members because if they don’t then the
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No‚ Life in the army is nothing like Charley expected it nor did any of the other soldiers. At the end of the first chapter‚ it says “ Nobody thought it would be so bad. Nobody thought it could be so bad. And all the officers and politicians and newspapers said it would be a month or two‚ no longer. It would all be over by fall.” Charley didn’t think the war would be so bad because the press led him to believe this. The war officers and colonials led Charley and themselves to believe that this
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In the context of the shareholder wealth-maximization model of a firm‚ what is the expected impact of each of the following events on the value of the firm? Explain why Shareholder wealth-maximazation model goals to maximize the present value of the expected future cash flow for the equity owner’s (shareholder). It is the long term business goal and the value for the firm is determined by the amount‚ timing‚ and risk of the firm’s expected future profits. For the following events‚ the value of
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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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– 2012 Volume – 1‚ Issue – 2 Article #01 IJAR-BAE Research Paper ISSN: 1839-8456 The impact of merger on shareholders’ wealth Emon Kalyan Chowdhury Lecturer & Assistant Proctor‚ Faculty of Business Studies‚ Premier University‚ Chittagong‚ Bangladesh Corresponding author’s e-mail: emonkalyanchy@gmail.com Abstract The purpose of this paper is to know the impact of merger on the shareholders of different companies. This is an attempt to evaluate the impact of merger on companies through a database
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JUSTIFYING SHAREHOLDER WEALTH MAXIMISATION Alan D Morrison Programme Director‚ The Oxford Finance Programme for Senior Executives; Professor of Finance‚ Saïd Business School CORPORATE OBJECTIVES AND CORPORATE FINANCE The Role of the Corporation Corporate fi nance is the branch of economics that concerns itself with the ways in which corporations fi nance their activities. If we want to think clearly about this topic‚ we need a simple model of the corporation. Figure 1 is about the simplest
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1. What does it mean to say gender is socially constructed? Give at least one example from Lorber’s article. Saying gender is socially constructed means there are widely-shared and deeply-rooted social expectations on how men and women suppose to behave. Such expectations build a clear division between men’ and women’ roles in the society and enforce them to adjust their behaviors to suit the assigned gender roles. For example‚ as Lorber points out in her article “The Social Construction of Gender”
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important issue today‚ and is evidenced by undisputable scientific research. Government officials under the Republican Party and their supporters are the most common doubters of climate change today. They will often either argue that climate change does not exist‚ or argue that the changing climate is natural‚ and would have happened with or without the existence of humans. There is scientific evidence to disprove this‚ but these skeptics turn a blind eye. According to NASA‚ 95% of climate scientists
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