The ultimate responsibility for monitoring a firm rests with the shareholders only. shareholders, board of directors,...

The ultimate responsibility for monitoring a firm rests with the shareholders only. shareholders, board of directors, independent accountants, and lenders. shareholders, board of directors, and independent accountants. shareholders and board of directors.

Solutions

Expert Solution

Shareholders, Board of Directors, Independent Accountants and Lenders

Explanation

All mentioned above are known as the stakeholders of the company, the shareholders are responsible to monitor the firm because it is the actual owner of the firm and has made investment in the firm expecting its investment to grow over time with firm. So, monitoring by shareholders becomes important as they keep a track of the growth of the firm as well as their investment

Board of Directors determines the firm's strategy and manages the firm so they need to monitor the firm for the welfare of shareholders and other stakeholders

Independent Accountants keep a track of firms activities to determine whether the firm is on a right track as it mention or the case is different.They do so by auditing and analysing the financials of the firm frequently to ensure that it is on a right track

Lenders have provided the firm with their money so any adverse decision by the firm could put their money in danger therefore they also need to keep a track of the firms activities.

jeff jeffy answered 2 months ago

Next > < Previous

Related Solutions

Which of the following is NOT a function of the board of directors? A. monitoring the...

Which of the following is NOT a function of the board of directors? A. monitoring the performance of the company B. determining how top executives should be compensated C. day−to−day running of the company D. answering to shareholders of the company

Suppose that the shareholders can hire a board of directors to monitor the CEO. The board...

Suppose that the shareholders can hire a board of directors to monitor the CEO. The board of directors cannot perfectly monitor the effort level of the CEO, but hiring the board of directors increases the chance that they observe the true effort level of the CEO. The cost of hiring the board of directors to the shareholders is z. If hired, the board of directors will observe the effort level of the CEO with probability ½. Assume that the CEO...

Discuss the role and powers of shareholders and the board of directors in a corporation.

What are the responsibilities/duties of the Board of Directors in acting to protect the shareholders of...

What are the responsibilities/duties of the Board of Directors in acting to protect the shareholders of a publicly traded company? Why do you think that Directors should have these duties? Do you believe that shareholders should be allowed to file lawsuits against members of the board if they feel the board member has not done a good job in making the corporation profitable? Why or why not?

what are the responsibilities of the board of directors to stakeholders other than shareholders? Answer in...

what are the responsibilities of the board of directors to stakeholders other than shareholders? Answer in 2-3 paragraphs

1-What are the responsibilities/duties of the Board of Directors in acting to protect the shareholders of...

1-What are the responsibilities/duties of the Board of Directors in acting to protect the shareholders of a publicly traded company? 2-Why do you think that Directors should have these duties? 3-Do you believe that shareholders should be allowed to file lawsuits against members of the board if they feel the board member has not done a good job in making the corporation profitable? Why or why not?

Explain the division of power between the Board of directors and General Meeting of Shareholders.

What does it mean that the board of directors represents the shareholders of a corporation? Do...

What does it mean that the board of directors represents the shareholders of a corporation? Do you believe that a focus on shareholders and profit may lead to the types of ethical problems that have been seen in some large corporations recently? Why or why not?

The shareholders' equity of Crystal Company includes the items shown below. The board of directors of...

The shareholders' equity of Crystal Company includes the items shown below. The board of directors of Crystal declared cash dividends of $6.5 million, $10 million, and $45 million in each of its first 3 years of operation: 2009, 2010, and 2011, respectively. Common stock, $1 par, 50,000,000 shares outstanding Preferred stock, 7%, $100 par, 1,000,000 shares outstanding (cumulative) Preferred stock, 6%, $100 par, 100,000 shares outstanding (non-cumulative) Determine the amount of dividends distributed on preferred and common stock for each...

The Board of Directors, shareholders, stakeholders (like community and interest groups), and executive compensation, are the...

The Board of Directors, shareholders, stakeholders (like community and interest groups), and executive compensation, are the most common factors that influence the strength of corporate governance in an organization. Identify a company and search their website using the terms “corporate governance” or “investor relations” or “corporate social responsibility reporting” (you may identify others that also address the company's governance policies, such as “transparency” “ethics” or “code of conduct”).

Subjects