Corporate managers are expected to make corporate decisions that are in the best interest of

Related BrainMass Solutions

• Why should a financial manager understand the five basic finance functions?

  For this reason, managers are required do what is in the best interest of the shareholders. In other words, managers must make decisions that would increase the value of shareholders.

• Business Policy and Corporate Governance

  First, there is a conflict of interest between the management and the shareholders. The management continues to make bad decisions if they feel that these will lead to a higher compensation, a faster promotion, or a better career.

• Ethics and Managers and Board of Directors, Corporate Shares

  There is a specific reason for this so that the managers nad board members do not take unncecesary risks with the firm and don't make decisions that are not for the firms best interests but rather are for the best interest of the individual managers or

• Incorporating economic realities and ethical decision making

  In effect, when making decisions and in the process of planning corporate strategy, it not enough to just move with 'what is best for the company in mind' these decisions must take in the whole picture; was it best for the surrounding environment.

• Corporate finance - In practice,why might these disciplinary mechanisms not work?

  Company faces the problem of conflict of interest between the organization and management. In theory stockholders are expected to exercise control over managers through the annual meeting or the board of directors.

• Potential Problems with an Agency Relationship

  A financial manager in a company would therefore need to make decisions that are in the best interest of the shareholders of a company, those which will increase the value of the stockholders (Lui, 2011).

• Role of the Financial Manager

  Managers Shareholders are generally well aware of this situation and can employ various controls such as incentives that encourage the financial manager to act in the best interests of the business.

• Corporate Governance, Corporate Social Responsibility and Business Globalization

  Best regards, Your BrainMass Academic Expert Corporate governance can be defined as the rules and procedures that influence the operations of the company and the decisions of its managers.

• Eliminating Agency Problems

  In the course of running the business, the managers may make decisions in conflict with shareholders' best interest. The CEO is growing the firm to eliminate the threat of a takeover or to increase his job security.