What are some actions an entrenched management might take that would harm shareholders?

Q: What actions that shareholders can take to ensure that management's and shareholders' interests are…

A: The shareholders are the owners of the company. They are responsible for the decision making and…

Q: How the corporate governance is useful for a company? O a. It maximizes the mismanagement of the…

A: ANswer -    Option C is Correct Option - C. It Maximizes the Share Prices of the Company .

Q: Why should shareholder wealth maximization be the overriding objective of the management?

A: We know that shareholder invest the money into the business and become the owner of the company,…

Q: What do you think is the main issue of conflict between the stockholders and managers?

A: There are various conflicts of interest that can impact manager's decisions to act in shareholders'…

Q: how a firm might use stock options in order to incentivise a manager to work in the shareholders’…

A: Stock Options: These are incentives provided by the company for its employees to stay more…

Q: is there is a evidence that a more robust corporate governance could avert unethical issues?

A: Corporate governance is important as it makes the rules and regulations for the smoothening of…

Q: Which one of the following is not the underlying principles of the corporate governance? Fairness…

A: Corporate governance means management of the corporate or companies with the help of rules,…

Q: What is Corporate Governance? What are attributes and the importance?

A: Good corporate governance is beneficial to corporate success and economic growth in the long run. In…

Q: How could overconfidence affect the financial manager of the firm and the firm’s shareholders?

A: The company have the option to issue its equity shares to the public for raising capital or…

Q: What conflicts of interest can arise between managers and stockholders?

A: Stockholders also knowns as shareholder is an individual, firm, or institution which owns at least…

Q: What do you see as some of the possible problems if shareholder value is seen as a strategy (and not…

A: Strategy refers to the financial approach for the planning of the functions that are based on a…

Q: What business risks does Dell face that may threaten its ability to satisfy shareholder expectations

A: Shareholders are the persons who have ownership of the shares of any private or public concern.

Q: maximization

A: The prime objective of management accounting is the maximization of shareholders' wealth whereas…

Q: Managers may operate in stockholders' best interests, or managers may operate in their own personal…

A: The answer is stated below:

Q: conflicts that can arise when a company is owned by group of shareholders but managed by a different…

A: The shareholders are owners of the business. As per agency theory, the management act as agents on…

Q: It is an axiom that may be characterized by managers making decisions that conflict with the best…

A: Agency problem arises during the time of dissatisfaction or conflict of interest between the…

Q: Explain how a firm might use stock options in order to incentivize a manager to work in the…

A: It is a duty of a manager to work towards the interest of shareholders/origination because manager…

Q: The agency problem between shareholders and managers is the result of separation of ownership and…

A: The agency problem is a basic concepts in corporate finance that explains the conflict of interest…

Q: nature of corporate governance damages the financial stability c

A: Option "b" is wrong because compliance of corporate governance with formal laws will result in…

Q: What goals might be persued by managers instead of maximization of shareholders wealth

A: Goals of financial management should be so articulated as to help achieve the objective of wealth…

Q: Why might one expect managers to act in shareholders' interests? Give some reasons.

A: Managers would act in shareholders’ interests as a result of they need a duty to act in their…

Q: What is the possible agency conflict between inside owner/managers and outside shareholders? What…

A: What is the possible agency conflict between inside owner/managers and outside shareholders?…

Q: Is maximizing shareholder value inconsistent with being socially responsible?Explain.

A: Maximizing the shareholder's value is the highest goal for any organization as they are the owners…

Q: Do you believe that corporate governance is only exercising power over entities by managing them?

A: Management: It defines an act or process of managing business activities. They perform the function…

Q: what does it mean to say that managers should maximize shareholders wealth subject to ethical…

A: Share- It is a unit of ownership in a company's capital. It entitles the shareholder to an equal…

Q: Are managers of firms with formidable takeover defenses more or less likely to act in the…

A: Just like other jobs, management jobs are also at risk in the event of takeovers. So, the answer…

Q: or

A: A hostile takeover is a sort of business purchase or merger that is carried out against the…

Q: What is the implication of managerial entrenchment: should company favor debt or equity? Why?

A: Managerial entrenchment theory-says that allotment of shares inside the organization such as…

Q: Why would managers misrepresent the financial results oftheir companies?

A: Fraud:   It is an intentional misappropriation of the assets or the financial records of an…

Q: Explain the Threat and Opportunity of Shareholder Activism ?

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: The separation of ownership from management creates a situation in which: a. Management may act in…

A: Option (a) is incorrect as management may act in its own interest rather than that of creditors.…

Q: What is the possible agency conflict between inside owner/managers andoutside shareholders?

A: Agency conflict: The conflict of interest of two parties one which is the principal and other which…

Q: explain how the separation of ownership and control in american corporation might lead to poor…

A:

Q: What business risks does Toll Brothers face that may threaten the company’s ability tosatisfy…

A: The Toll brother’s faces numerous business risks that are described in the annual report. Apart from…

Q: How do the shareholders of an organization can encourage its manager to act in a way which is…

A: The primary objective of any organization is to increase shareholders wealth.  Wealth maximization…

Q: Explain how a firm might use stock options in order to incentivise a manager to work in the…

A: Company provide incentives to managers so that they work in interest of shareholders maximization…

Q: Corporate Ethics Is it unfair or unethical for corporations to create classes of stock with unequal…

A: The Company is allowed to Create a Number of Classes  of stock they want, it can have different…

Q: how does the existence market for corporate control affect firm performance?

A: Market for corporate control: When the resources of the company are not utilized to its fullest…

Q: Use the opportunistic perspective of PAT to explain the potential for managers to manipulate…

A: SOLUTION- POSITIVE ACCOUNTING THEORY (PAT) PREDICTS THAT PROCESSES CAN BE PLACED IN PLACE ON AN…

Q: What are the conflicts between shareholders and managers

A: Shareholders are real owners of company as they hold proportion of common stock in company but due…

Q: Why is corporate governance important toinvestors? Explain how each of the following isrelated to…

A: Corporate governance is the system by which companies are directed and controlled. Boards of…

Managing Agency Conflict

Conflict is defined as an act of disagreement between two parties caused by uncertainties between them. The conflict has a negative outcome that affects both parties involved in the argument. Conflict arises when the parties' thoughts do not align or go in opposite directions. Conflicts have negative consequences for both the individual and the business. As a result, it should be avoided.