answer quickly Mona and Hamad work for Sports Products, a major company in the production of boatequipment and accessories. Mona works as a clerical assistant in the accounts department,and Hamad works as a packaging worker in the shipping department. And one day duringlunch, they were talking about the company. Hamad complained that in his work he isalways careful not to waste packaging and always does his work efficiently and cost-effectively. Despite the efforts he and his colleagues in the department made, thecompany's share price fell to about US $2 per share over the past nine months. Mona notedthat she shared Shaikh Hamad's frustration, especially as the company's profits wereincreasing. Neither knew why the stock price of the company had fallen even though profitswere increasing. Mona noted that she had seen documents describing the company's profit-sharing plan, under which all directors are compensated in part on the basis of thecompany's profits. It also suggested that profits might be an important factor formanagement; It directly affects the salaries of its members. Shaikh Hamad said: "Thisstatement makes no sense; Because the shareholders own the company. Should notmanagement do what is best for the benefit of shareholders? Something is wrong!" Monareplied, "Well, maybe that explains why the company itself is not interested in the stockprice. The only dividends that shareholders receive are cash distributions, and the companyhas not paid dividends in its 20-year history. Therefore, we as shareholders do not directlybenefit from the profits. The only way to benefit is for the share price to rise." Hamad shookhis head and said, "This may explain why the company is being sued by local environmentalofficials for dumping pollutants in the nearby river. Why is money being spent to reducepollution? It increases costs, reduces profits, and therefore reduces management returns!"Required: solve all they connectedA. What should the management of SportsProducts pursue as its main objective Andwhy?B. Does it look like the company has some kind of agency problem? Answer withexplanation.C. Evaluates the company's approach to pollution reduction. Does it sound ethical?What are the best benefits that business owners can get from incurring pollutionabatement costs on their own?D. Does the company seem to have an effective corporate governance structure Pleaseexplain any shortcomings?E.Does the company seem to have an effective corporate governance structure Pleaseexplain any shortcomings?

* Question D and E are the same. So we are only solving question D for you. Business: It refers to…

Mona and Hamad work for Sports Products, a major company in the production of boat equipment and accessories. Mona works as a clerical assistant in the accounts department, and Hamad works as a packaging worker in the shipping department. And one day during lunch, they were talking about the company. Hamad complained that in his work he is always careful not to waste packaging and always does his work efficiently and cost- effectively. Despite the efforts he and his colleagues in the department made, the company's share price fell to about US $2 per share over the past nine months. Mona noted that she shared Shaikh Hamad's frustration, especially as the company's profits were increasing. Neither knew why the stock price of the company had fallen even though profits were increasing. Mona noted that she had seen documents describing the company's profit- sharing plan, under which all directors are compensated in part on the basis of the company's profits. It also suggested that profits might be an important factor for management; It directly affects the salaries of its members. Shaikh Hamad said: "This statement makes no sense; Because the shareholders own the company. Should not management do what is best for the benefit of shareholders? Something is wrong!" Mona company itself is not interested in the stock price. The only dividends that shareholders receive are cash distributions, and the company replied, "Well, maybe that explains why has not paid dividends in its 20-year history. Therefore, we as shareholders do not directly benefit from the profits. The only way to benefit is for the share price to rise." Hamad shook his head and said, "This may explain why the company is being sued by local environmental officials for dumping pollutants in the nearby river. Why is money being spent to reduce pollution? It increases costs, reduces profits, and therefore reduces management returns!" Required: solve all they connected A. What should the management of SportsProducts pursue as its main objective And why? B. Does it look like the company has some kind of agency problem? Answer with explanation. C. Evaluates the company's approach to pollution reduction. Does it sound ethical? What are the best benefits that business owners can get from incurring pollution abatement costs on their own? D. Does the company seem to have an effective corporate governance structure Please explain any shortcomings? E. Does the company seem to have an effective corporate governance structure Please explain any shortcomings?

Mona and Hamad work for Sports Products, a major company in the production of boat equipment and accessories. Mona works as a clerical assistant in the accounts department, and Hamad works as a packaging worker in the shipping department. And one day during lunch, they were talking about the company. Hamad complained that in his work he is always careful not to waste packaging and always does his work efficiently and cost- effectively. Despite the efforts he and his colleagues in the department made, the company's share price fell to about US $2 per share over the past nine months. Mona noted that she shared Shaikh Hamad's frustration, especially as the company's profits were increasing. Neither knew why the stock price of the company had fallen even though profits were increasing. Mona noted that she had seen documents describing the company's profit- sharing plan, under which all directors are compensated in part on the basis of the company's profits. It also suggested that profits might be an important factor for management; It directly affects the salaries of its members. Shaikh Hamad said: "This statement makes no sense; Because the shareholders own the company. Should not management do what is best for the benefit of shareholders? Something is wrong!" Mona company itself is not interested in the stock price. The only dividends that shareholders receive are cash distributions, and the company replied, "Well, maybe that explains why has not paid dividends in its 20-year history. Therefore, we as shareholders do not directly benefit from the profits. The only way to benefit is for the share price to rise." Hamad shook his head and said, "This may explain why the company is being sued by local environmental officials for dumping pollutants in the nearby river. Why is money being spent to reduce pollution? It increases costs, reduces profits, and therefore reduces management returns!" Required: solve all they connected A. What should the management of SportsProducts pursue as its main objective And why? B. Does it look like the company has some kind of agency problem? Answer with explanation. C. Evaluates the company's approach to pollution reduction. Does it sound ethical? What are the best benefits that business owners can get from incurring pollution abatement costs on their own? D. Does the company seem to have an effective corporate governance structure Please explain any shortcomings? E. Does the company seem to have an effective corporate governance structure Please explain any shortcomings?

Management, Loose-Leaf Version

13th Edition

ISBN:9781305969308

Author:Richard L. Daft

Publisher:Richard L. Daft

Chapter12: Managing Human Talent

Section: Chapter Questions

Problem 1ED

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