Purchase Solution

Corporate v. Shareholder Conceptions

Not what you're looking for?

Ask Custom Question

Referring to the case file attached, can somebody guide me through the following question:

The case describes two conceptions of managers' responsibilities (on the ninth page). Which do you favour: the shareholder conception or the corporate conception? Does your stance make a difference in this case?

Attachments
Purchase this Solution

Solution Summary

The solution explains the differences between the shareholder and corporate conceptions, using Marriott as the example.

Solution Preview

There are two conceptions of managerial responsibility: the shareholder conception and the corporate conception.

Both of the conceptions are well-documented, however the shareholder conception is the more traditional view. The shareholder view places the shareholder or stockholders at the centre of the company. It recognizes their position as the real owners of a company. This means that the company has primary responsibility for the financial well-being of the shareholders. The company's goal, in other words, should be to increase value for the shareholders.

The corporate conception places the company and its executive managers at the centre. Under this view, the needs and goals of the management are perceived to be of utmost importance. This doesn't mean that the shareholders are not listened to, but ...

Purchase this Solution


Free BrainMass Quizzes
Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Motivation

This tests some key elements of major motivation theories.