Question

Read the two articles listed under “Required Reading” below. Search the library data bases (particularly OneSearch) and identify at least 3 additional articles but more current articles relevant to the topic. Using these 3 articles. Your response should be no more than 500 words. URGENT PLEASE

Management is an agent of the Shareholders of a Corporation. Discuss the pros and cons of this statement with the help of information from multiple sources. What is your opinion?

Answer 1

answer-

1- Management is an agent of the Shareholders of a Corporation-

the work of an agent is to act on the behalf of the principal or master. just like from this management comprises the persons -

• board of directors
• chief executive officers
• managers etc.

all of them act as an agent on behalf of the owner of the coprporation who are shareholders.following points can justify that management act as agents of the shareholders of the corporation-

1. shareholders are the owners who have the capital & fund but do not have managerial knowledge or expertise to run the business so they hire managers to run thier business.
2. manager make decisions based on thier expertise & knowledge on behalf of the shareholders as owners of the corporations lacks time, participation in oepration of business.
3. managers act as agents because they focus on thier short terms financial gains & perks like attractive salary package, bonuses, rewards, incentives etc.
4. shareholders hire managers as agents because they have capital & fund & want to invest that capital in business for long term financial gains.

PROS of management as agent  of the Shareholders of a Corporation-

to managers-

• limited liablities as they are only stockholders in the company not the owners of the corporation.
• fixed salary package & other benefits.
• less tension of the risk of loss in business.

to shareholders of corporation-

• long term finacial gains from the business
• operations of buisness by business experts & professionals
• huge share of profits for the investement in the corporation.
• ease transfer of ownership in the corporation

Cons of Management is an agent of the Shareholders of a Corporation-

to managers & other management members-

• board of directors can be removed from the position if majority of the votes in against.
• sometimes management can be intefere by the shareholders of the corporation as they are the owners of the business.
• high work pressure from shareholders & immediate reporting to sharehloders demanded by the shareholders.

to Shareholders of a Corporation-

• management can mislead or fraud with the shareholders for personal gains.
• not so limited liabilities on shareholders as they are the owners of the corporation as well as liable for the works of its management.
• lack of management information & other expertise to run the business.

* above answer is written in my own words from some web search hope this answer would help you.good luck.