DWF files are highly compressed, smaller and fast. Public Pastes. Java 5 min ago 1. HTML 5 5 min ago 1. HTML 5 10 min ago 0. C 10 min ago 0. Java 13 min ago 1. HTML 5 20 min ago 1. HTML 5 25 min ago 4. Managers of these institutions should be active in the monitoring of management and vote their shares for the benefit of the shareholders.
The power of institutional investors far exceeds the voting power of individual investors. Studying to pass certification exams allows employees to continue their education beyond their undergraduate degree. The study will be focused on one area of finance, which is likely to be that needed to perform their job well.
Furthermore, it will allow the employer to advertise the additional training of the employees, and thereby attract additional business. Is the goal of maximization of shareholder wealth necessarily ethical or unethical? It is not the goal that makes maximization of shareholder wealth ethical or unethical, it is actions of the financial manager in pursuit of this goal.
Comparison of advantages and disadvantages of a partnership versus incorporation. Answer: While Jack and Ann disagree over whether or not their firm should incorporate or remain as a partnership, each form of business organization has its advantages and disadvantages. If corporate earnings are paid out as salary, Jack and Ann will pay their individual rates as they do on their partnership earnings. In a partnership, each partner has unlimited liability and may have to cover debts of other partners, while corporate owners have limited liability that guarantees that they cannot lose more than they have invested in the corporation.
The third major consideration is ease of transfer of the business. Partnerships are harder to transfer and are technically dissolved when a partner dies, while a corporation can have a very long life with ownership readily transferred through the sale of stock. Cash flow vs. The most common cause is when expenses have a shorter due date than expected revenue. On the other hand, if the firm has not experienced such a cash crunch before, there may be larger problems looming ahead and it would be unseemly to spend cash on a party that would be better spent meeting the debt obligations of the firm.
At this point there are two questions that must be answered. In other words, will the project generate a positive net PV? If it does, the project must be considered further to see if it is the best use of capital.
If the firm has a need to ration capital, the project must then be compared to other projects competing for the limited capital to see if it is viable.
Depending upon the industry, however, failure to keep up with competitors can be devastating. Agency costs Answer: Agency costs are the costs borne by stockholders to maintain a governance structure that ensures against dishonest acts of management, and gives managers the financial incentive to maximize share price.
One example of agency costs is stock options, which are used to provide an incentive for managers to work diligently for the benefit of the firm.
Tips are similar to stock options in that they are offered as rewards for good service much as stock options are used to reward managers, presumably based on their good performance—which subsequently leads to a higher stock price. The Donut Shop, Inc. Liability comparisons LG 2; Basic a. Harper has unlimited liability. Harper has limited liability, which guarantees that she cannot lose more than she invested. Accrual income vs. The cash flow statement is more useful to the financial manager.
The accounting net income includes amounts that will not be collected and, as a result, do not contribute to the wealth of the owners. Cash flow statement LG 4; Intermediate a. If Jane is facing a shortage, she could cut back on some of her discretionary items, including clothing, dining out, and gas i.
She may, for instance, observe the existence of large automobile insurance bills or tendency to spend more during the Christmas holiday season. If her August net cash flow is not needed to pay anticipated bills, she should invest in a diversified portfolio. Ken Allen should recommend the new robotics be used on the heavy truck gear line. The marginal benefits exceed the marginal costs e. Ken Allen should determine whether there will be additional training necessary with the new robotics, whether even better robotics may be available in a short while, and what will be the energy consumption of the new robotics.
Identifying agency problems, costs, and resolutions LG 4; Intermediate a. In this case the employee is being compensated for unproductive time. The company must pay someone to take her place during her absence.
Installation of a time clock that must be punched by the receptionist every time she leaves work and returns would result in either: 1 her returning on time or 2 reducing the cost to the firm by reducing her pay for the lost work. The costs to the firm are in the form of opportunity costs. Money budgeted to cover the inflated costs of this project proposal is not available to fund other projects that may help to increase shareholder wealth.
The manager may negotiate a deal with the merging competitor that is extremely beneficial to the executive and then sell the firm for less than its fair market value.
A good way to reduce the loss of shareholder wealth would be to open the firm up for purchase bids from other firms once the manager makes it known that the firm is willing to merge. If the price offered by the competitor is too low, other firms will raise the price closer to its fair market value. These workers have not been on the job as long to increase their work efficiency.
Also, the better employees generally need to be highly compensated for their skills. One approach to reducing the problem would be to give the manager performance shares if he or she meets certain stated goals.
The company may be referring to legal issues, and the fact that it will comply with laws. For instance, it may be implying that it will not be using illegal immigrants and paying them a reduced salary. It may refer to the use of substandard materials, which are less likely to hold up over an extended period of time. Sometimes the use of substandard manufacturing facilities will increase the chance of harm to employees or worse, as witnessed by the BP Gulf oil spill in April Assessing the Goal of Sports Products, Inc.
Maximization of shareholder wealth, which means maximization of share price, should be the primary goal of the firm. Unlike profit maximization, this goal considers timing, cash flows, and risk. Not a member of Pastebin yet? Sign Up , it unlocks many cool features! LibreOffice is a free-to-download open-source office productivity suite that you can easily edit PDFs LaptopMag is supported by its audience.
When you purchase through links on our site, we may earn an affiliate commission. Learn more By Ma. PDF is a hugely popular format for documents simply because it is independent of the hardware or application used to create that file. This means it can be viewed across multiple devices, regardless of the underlying operating system.
An oversized pdf file can be hard to send through email and may not upload onto certain file managers.
0コメント