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finance???
finance???
7.Should the managers of a company own sizable amounts of common stock in the company? What are the pros and cons?
Fundamental of Financial Management - 12 Edition
Chapter I: The Role of Financial Management
Answers:
Sandy: There may be conflicts of interest. They may make decisions beneficial to themselves and detrimental to the minority shareholders
2008-02-11 04:53:16
2008-02-11 04:53:16
Chosen Answer
Clive L: It is in the interests of a company for managers, and for that matter employees, to hold shares in the organisation. When these persons are shareholders they are more likely to work towards making the enterprise more profitable, efficient and sustainable. As the basis of any enterprise is to provide a good or service to the community, the managers and shareholders in the enterprise need to keep this in mind. There needs to be a balance between the price charged for the good or service and the profits to be generated by their supply.
2008-02-12 21:46:10
Clive L: It is in the interests of a company for managers, and for that matter employees, to hold shares in the organisation. When these persons are shareholders they are more likely to work towards making the enterprise more profitable, efficient and sustainable. As the basis of any enterprise is to provide a good or service to the community, the managers and shareholders in the enterprise need to keep this in mind. There needs to be a balance between the price charged for the good or service and the profits to be generated by their supply.
2008-02-12 21:46:10