ahaskar4242 ahaskar4242
  • 20-02-2020
  • Social Studies
contestada

What are some of the problems involved in implementing the goal of maximization of shareholder wealth?

Respuesta :

Alehando Alehando
  • 20-02-2020

Answer: Agency problem, where managers and stakeholders don't align in view for the interest of the firm.

Explanation:

Managers tend to operate the firm without the interest of the stakeholders in mind and this causes a disconnect. This is called an agency problem and it's observed when the manangers and stakeholders share different interest.

Answer Link

Otras preguntas

A crane is being used to remove a piano from an apartment building. The apartment window is 56 feet directly above the bed of the truck. The base of the crane i
Site of important Christmas time battle in 1776
What is the volume of the cube if each side is 35 inches
What is a planet’s period of rotation? A. the shape of its orbit B. its tilt relative to the sun C. one complete spin on its axis D. one complete orbit aro
In New York city a huge ___ is held to celebrate St. Patrick's Day. a. parade b. marathon c. demonstration
Find the simplest form of each fraction 42/14 2 15/40
Which additional word in the poem should be capitalized? The Elephant The long gray elephant lumbered Slowly down the river bank, halting for cool refreshment.
How can words or stories connect generations?
here is a math solve the equation k+ 2 5\8 = 3 Pleas i Neeed help
Mark the two FALSE statements. Nazism and fascism have some similarities. Political and economic, but not social activities, are under the rule of a fascism gov