Business, 07.07.2021 01:00, erikloza12pdidtx
Corporate governance: Methods for influencing management's decisions
Corporate governance refers to policies and rules, regulations and laws, and activities that (1) influence both management’s decisions and its company’s operations, and (2) affect the relationships between a business’s stakeholders. These stakeholders include the company’s executives and managers, shareholders, creditors, current and former employees, competitors, and local and global communities.
In simple terms, corporate governance provisions can take two forms: Carrots, Tomatoes, or celery and stones, rocks, or sticks, with the former intended to provide positive or negative reinforcement for undertaking activities that are beneficial to the firm’s stakeholders, and the latter intended to punish, reward, or promote management for its undesirable decisions or actions.
These governing forces are both internal and external to the organization, and they can either align management’s interests with those of their shareholders (a positive outcome) or further entrench the firm’s management (a not-so-positive outcome). An entrenched management is one that is likely to be removed, all other things remaining equal.
Internal and external corporate governance provisions and activities can take many forms, including a targeted share repurchase provision. Which of the following best describes this technique?
A. This procedure for facilitating a takeover and changing a firm’s management involves repurchasing, for a fraction of their market value, the shares owned by the firm’s board members.
B. This method of resisting a takeover involves the repurchase of shares from a firm threatening a hostile takeover.
C. This anti-takeover tactic requires the firm to automatically confiscate and sell the shares of an individual shareholder who owns more than a specified amount of a target company’s stock.
According to financial and management theory, which of the following practices are reasonably expected to align the behaviors of a corporation’s management with those of the firm’s shareholders?
A. The CEO should sign the company’s financial statements without reviewing them—provided that the CFO has already signed them—since he or she knows that the CFO’s signature means the statements are accurate and in good form.
B. The board should have a true majority of outside members who bring business experience to the board and are not too busy to give sufficient attention to the board’s responsibilities and activities.
C. The firm’s capital structure should consist of 100% debt financing, because it reduces waste and the making of risky investments by senior management.
D. The charter should require the inclusion of a poison pill provision.
Answers: 2
Business, 22.06.2019 16:00, leo4687
Advanced enterprises reports year-end information from 2018 as follows: sales (160,250 units) $968,000 cost of goods sold 641,000 gross margin 327,000 operating expenses 263,000 operating income $64,000 advanced is developing the 2019 budget. in 2019 the company would like to increase selling prices by 14.5%, and as a result expects a decrease in sales volume of 9%. all other operating expenses are expected to remain constant. assume that cost of goods sold is a variable cost and that operating expenses are a fixed cost. should advanced increase the selling price in 2019?
Answers: 3
Business, 22.06.2019 19:00, bussbhsvssu557
The market demand curve for a popular teen magazine is given by q = 80 - 10p where p is the magazine price in dollars per issue and q is the weekly magazine circulation in units of 10,000. if the circulation is 400,000 per week at the current price, what is the consumer surplus for a teen reader with maximum willingness to pay of $3 per issue?
Answers: 1
Corporate governance: Methods for influencing management's decisions
Corporate governance refers to...
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