Question

In: Finance

A guest speaker in class states “managers should only focus their attention on what shareholders want...

A guest speaker in class states “managers should only focus their attention on what shareholders want because they are the owners of the firm and the managers work for the shareholders”. Offer your view on this statement based on your readings, life experiences, and ethics.

  • See Assigned Readings “Related to agency theory and the goal of financial management”

Solutions

Expert Solution

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

Should company managers focus on "shareholder value maximization" as the primary goal of a firm? What...
Should company managers focus on "shareholder value maximization" as the primary goal of a firm? What are the pros and cons of shareholder value maximum as the objective function of the firm? What kinds of conflicts can arise because of this goal? Please explain.
If a business wants to increase the wealth of its shareholders, it should focus on minimizing...
If a business wants to increase the wealth of its shareholders, it should focus on minimizing costs. maximizing revenues. maximizing return on investment. maximizing profits.
Why should company managers or investors pay attention tomacroeconomic indicators? Is it a good idea...
Why should company managers or investors pay attention to macroeconomic indicators? Is it a good idea for company managers to do a formal review of key macroeconomic indicators every quarter (every 3 months) or is it a waste of time?
Why should company managers or investors pay attention to macroeconomic indicators? Is it a good idea...
Why should company managers or investors pay attention to macroeconomic indicators? Is it a good idea for company managers to do a formal review of key macroeconomic indicators every quarter (every 3 months) or is it a waste of time?
Managers should focus on strategies to increase profits primarily to generate more revenue or on strategies...
Managers should focus on strategies to increase profits primarily to generate more revenue or on strategies to cut costs to increase profits. What are your thoughts about this statement.
What is the agency relationship between shareholders ( or owners) and Managers ? what are agency...
What is the agency relationship between shareholders ( or owners) and Managers ? what are agency costs here in this relationship? What are the ways agency cost can be reduced ?
Recently President Obama has tried to focus public attention on inequality. a. What is the difference...
Recently President Obama has tried to focus public attention on inequality. a. What is the difference between income inequality and wealth inequality? b. Most policies that target inequality either target it at the low end of the income distribution by trying to increase wages of low-income workers, or at the high end of the income distribution by limiting wages of high-income workers. List a few potential policies of each type. c. In your opinion, should the government focus on the...
"Companies should focus on financial measures of quality because these are the only measures of quality...
"Companies should focus on financial measures of quality because these are the only measures of quality that can be linked to bottom-line performance." Do you agree? Explain with the use of at least two appropriate examples.
What should be longterm focus of management for the issue?
What should be longterm focus of management for the issue?
just want to talk about three questions managers should answer when setting regular prices are: What...
just want to talk about three questions managers should answer when setting regular prices are: What is the company’s target profit? How much will customers pay? Is the company a price-taker or a price-setter for this product or service?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT