Question

Explain a trend and the main reason for boards of directors and shareholders becoming more active in the operations of publicly held corporations

Answer 1

The trend/main reason why the board of directors and shareholders are becoming more active in the operations of the public held corporation is the increasing instances of white collar crimes (to protect the investors funds).

Factors that are considered when choosing business organizational form are;

-the nature of the business

-the products or services offered

-regulatory compliance requirements

Explanation:

The trend/main reason why the board of directors and shareholders are becoming more active in the operations of the public held corporation is the increasing instances of white collar crimes (to protect the investors funds).The trend is seen more towards protecting investor funds through tightened policies.This is because the increasing white collar crimes which are more insider jobs have led to the corporate governance to be more responsive and active in the operations of the public companies. The company through the board of directors and shareholders has therefore to put in place corporate governance policies and requirements.This will ensue that the investors funds and investments in the various or publicly listed firm are protect through accountability.

Factors that are considered when choosing business organizational form are;

-the nature of the business-the nature of the business in reference to either being private or public demands for a different business organization form.This is where the details on operations and shareholders is disclosed.

-the products or services offered-the products , the services as well as the sectors of the economy where the business will operate is a major consideration when choosing business organization form.

-regulatory compliance requirements-the regulatory needs and specifications on which forms are relevant to the various types of business is put in consideration when such decisions are made.