Shareholders, acting solely as shareholders, can incur obligations on behalf of the corporation in which they hold shares. Select one: True False
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- Identify the term being referred to: A process wherein new shares are offered to existing shareholders based on their current shareholdings.How would each of the following actions be expected to affect shareholder wealth?a. Southern Company adopts fuel-switching technology at its largest power plants.b. Ford Motor Company pays $2.5 billion for Jaguar.c. General Motors offers large rebates to stimulate sales of its automobiles.d. Rising interest rates cause the required returns of shareholders to increase.e. Import restrictions are placed on the French competitors of Napa wineries.f. There is a sudden drop in the expected future rate of inflation.g. A new, labor-saving machine is purchased by Wonder Bread and results in the layoff of 300 employees.Discuss the limitations of the dividend share valuation model for well established firms which have been listed on a stock exchange for many years.
- Economists refer to the conflict between the interests of shareholders and the interests of top management as a stock-equity problem. a liability problem. a principal-agent problem. a financial intermediary problem. PrécédentSuivantMarket efficiency primarily concerned with how well the financial market reflects all the available financial information in the prices of the shares of listed companies. * True or False?When one company buys the assets and liabilities of another company, this is known as which of the following? Choose one answer. Limited liability company Merger Conventional corporation Acquisition
- Why the company by placing the responsibility for handling share capital certificates in separate and independent organizations to fully implement internal control concept of separation duties?Construct a unique example showing how a SEO can make existing shareholders lose wealth and new shareholders gain wealthManiam is a newly appointed compliance officer of a public listed company. He hassought your advice on the following compliance issues:(a) Explain how should the minority shareholders be treated? (b) Boardroom independence.
- A disadvantage of a statutory close corporation is that: a) it cannot distribute dividends to members. b) not all states allow formation of this type of corporation. C) it must keep accurate records and file paperwork to document tax-exempt status. d) it can have no more than 100 stockholders.The objective of a publicly traded company is to make profit for its owners i.e. shareholders. However, there are millions of AIDS victims in this world. Most of these victims are from destitute countries, like African nations. It would be irrational for us to think that these people could afford this medicine at an existing market price. The world organizations, such as WHO (world health organization), provide with assistance by subsidizing AIDS related medicine. However, this is not enough as many people are dying every day. Many argue that this medicine should be free as it is the only way a victim's life could be prolonged or saved. GlaxcoSmithKline already allows license for generic drug production to countries, like South Africa. Should our government be involved in controlling the price of this drug? Or, should thegovernment force Glaxco to share the key knowledge of this product with its competitors (price becomes competitive)? Explain why or why not?Discuss whether environmental sustainability matters in creating value for shareholders.
