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Stockholders, Stakeholders, Competition and Improvements

1. The standard belief in our society is that ownership conveys rights that exceed the rights of the stakeholders. We all accept this without much thinking. So here is the devil's advocate question:

Why does ownership give one more rights to the company than the stakeholders such as employees who actually provide something just as essential as capital (their labor) to making the company successful. Both capital or money and employees are essential so why money or capital which is provided by the owners should be considered more valuable than the work of staff?

2. Why does competition help motivate improvements (It may seem obvious but think about it and try to come up with the not so obvious reasons). And what if you are a manager or CEO of a company that has little if any competition. What might you do to avoid the dangers of no or little competition?

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1. The standard belief in our society is that ownership conveys rights that exceed the rights of the stakeholders. We all accept this without much thinking. So here is the devil's advocate question:

Why does ownership give one more rights to the company than the stakeholders such as employees who actually provide something just as essential as capital (their labor) to making the company successful. Both capital or money and employees are essential so why money or capital which is provided by the owners should be considered more valuable than the work of staff?

Ownership gives a person more rights to the company versus those that are stakeholders because they are able to decide what stays or goes. They are more freedom than that of their own employees. Each of them are able to do ...

Solution Summary

This solution discusses stockholder, stakeholders, competition and improvements.

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