Write a paper on your perspective to the statements: 1. The primary role of management is to maximize the wealth of the shareholder 2. Financial management should include not only a concern for profit maximization but also for maximization of societal value.
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by Bartleby Expert- WRITE and submit a prepare on your perspective to the statements: “The primary role of management is to maximize the wealth of the shareholder.”What is the primary goal of financial management in a corporation?A. Maximizing sales revenueB. Minimizing expensesC. Maximizing shareholder wealthD. Maximizing employee satisfactionThe primary goal of financial managers include all of the following EXCEPT : A. Maximize stockholder wealth. B. Maximizing firm value C. Challenge legislation in states where the company operates D. Minimizing WACC
- What is the concept of financial management? A goal of financial management is to maximize the shareholders' value. What are the pros and cons of this goal?TOPIC: Introduction to Financial Management 1. Which of the following can be accepted as main points to note when it comes to a company's financial objective? O It is generally accepted that the main financial objective of a company should be to maximize (or at least increase) shareholder wealth. O There are practical difficulties in selecting a suitable measurement for growth in shareholder wealth. Financial targets such as profit maximization and growth in EPS might be used, but no financial target on its own is ideal. O Financial performance is therefore assessed in a variety of ways: by the actual or expected increase in the share price, growth in profits, growth in EPS, and so on. 2. Which of the following statement/s depicts agency relationships and conflicts? I. The owners expect the agents to act in the best interests of the owners. Ideally, the 'contract' between the owners and the managers should ensure that the managers always act in the best interests of the…Which of the following statements is(are) true about ESG? Select one or more: a. ESG is an important consideration in financial decisions as it provides a positive impact for long-term success for corporates through “Risk Reduction”. b. ESG is an important consideration in financial decisions as it provides positive impact for long-term success for corporates through “Fiscal policy”. c. ESG is an important consideration in financial decisions as it provides positive
- question 1 a) discuss ways in which a company's shareholders can encourage its managers to act in a way which is consistent with the objective of maximising shareholders wealth.explain the advantages and disadvantages of wealth maximization from the perspective of a company’s Chief Financial Officer. Include the effect on company stakeholders – internal (managers, employees) and external (suppliers, shareholders). Make sure that you include the effect on company stakeholders – internal (managers, employees) and external (suppliers, shareholders).Discuss ways in which shareholders of a company can encourage its managers to act in a way which is consistent with the objective of maximization of shareholders’ wealth.
- Choose the best description of the goal of the financial manager in a corporation where shares are actively traded. a. Maximize profits b. Maximize risk c. Maximize shareholders’ wealth d. Maximize number of outstanding sharesFinance experts contend that the ultimate goal of a firm should be maximization of shareholder wealth. On the other hand, managers tend to pursue different goals. Discuss the concept of shareholder wealth maximization, the goals of management and the reasons for the goal differences.Tutorial Questions Explain to John, your mentor, the primary goal of the organization? Your manager is requesting you to provide an explanation to the question. Would the role of a financial manager be likely to increase or decrease in importance if the rate of inflation increased? What is the difference between stock price maximization and profit maximization? What are the three principal forms of business organization? What are the advantages and disadvantages of each? What mechanisms exist to influence managers to act in shareholders’ best interests? What is an agency relationship? What agency relationships exist within a corporation? What are financial intermediaries, and what economic functions do they perform? How does an efficient capital market help to reduce the prices of goods and services? What is the term structure of interest rates? What is a yield curve? How should users and savers of…
