SU MBA6010 Week 1 Discussion Latest 2019 JUNE

Question # 00602233
Course Code : MBA6010
Subject: Business
Due on: 06/14/2019
Posted On: 06/14/2019 10:43 AM
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MBA6010 Managerial Finance

Week 1 Discussion

Financial Management Decisions

On the basis of the knowledge you gained from your readings, respond to the following questions:

Suppose management is examining policies that relate to maximizing profit and maximizing the wealth of the stockholders. Which of the aims, in the previous sentence, should be of higher priority to management and why?

Management decisions are sometimes not acceptable to shareholders, which creates conflicts. These conflicts are called agency problems.

Why do such conflicts develop? Provide at least two examples of agency problems.

Are such conflicts more likely to occur in smaller or larger organizations? Why?

What can be done to decrease the likelihood of these conflicts? Illustrate your answer using the two examples you gave.

Comment on the postings of two of your classmates. Do you agree with their position? Why or why not?

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