Question

In: Finance

Give some examples of ways in which a manager's goals can differ from those of shareholders.

Give some examples of ways in which a manager's goals can differ from those of shareholders.

Solutions

Expert Solution

Manager goals can differ from those of shareholders as follows-

A. Managers will always want profit maximization at any cost but shareholder will not want profit Maximization when there will be very high risk in the market for undertaking projects.

B. Managers will be wanting higher compensation for themselves whereas shareholder will always want a lower compensation for the managers.

C. Managers will never want any merger and acquisition because it will lead to losing up of their job whereas, shareholder will want company to enter into all such mergers and acquisition that lead to increase in the shareholders value

D. Managers will be wanting to engage into insider trading for their own profits whereas shareholders would not want insider trading because it can lead to regulatory problems.

E. Managers are always exaggerating the performance of the company whereas shareholders always want the true figure and not the manipulated figures of the books of accounts.


Related Solutions

Give some examples of ways in which manager's goals can differ from those of shareholders. That...
Give some examples of ways in which manager's goals can differ from those of shareholders. That is, please give some examples of potential agency conflicts between shareholders and managers.
Give some examples of ways you can check to see if a solution is reasonable or...
Give some examples of ways you can check to see if a solution is reasonable or not. Why is it important that you as an engineer be confident in your solutions?.
How do management techniques for high-priority stakeholders differ from those of low-priority stakeholders? Give examples.
How do management techniques for high-priority stakeholders differ from those of low-priority stakeholders? Give examples.
What are some ways that microbes are found in nature that differ from how they are...
What are some ways that microbes are found in nature that differ from how they are found in the lab? What are biofilms? Be able to describe and explain the formation of biofilms and some examples of interdomain communication.
In what ways do frequency distributions for qualitative data differ from those for quantitative data?
In what ways do frequency distributions for qualitative data differ from those for quantitative data?
Give some examples of non-feeding larvae from several phyla or other tax Give some examples of...
Give some examples of non-feeding larvae from several phyla or other tax Give some examples of feeding larvae from several phyla or taxa. Use appropriate names for the phyla and the larval types. How does having a nonfeeding larva fundamentally alter the ecology and population biology of an organism?
What is corporate misconduct and what are some examples from businesses or individuals? Also can give...
What is corporate misconduct and what are some examples from businesses or individuals? Also can give stats on corporate misconduct.
Give examples of situations where shareholders’ and other stakeholders’ interests are complementary. Give examples of situations...
Give examples of situations where shareholders’ and other stakeholders’ interests are complementary. Give examples of situations where these interests are not complementary. If interests conflict, what should management do?
Give some examples of self directed learning goals in your internship and how would you achieve...
Give some examples of self directed learning goals in your internship and how would you achieve those goals.
1. Give and identify examples of ways in which products of microbial metabolism are used by...
1. Give and identify examples of ways in which products of microbial metabolism are used by humans 2. Give and identify examples of ways in which products of microbial metabolism can be helpful or harmful to other organisms
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT