we are going to explain the role of shareholders‚ directors and partners in the different types of business; and then we will see the importance of legal constraints on decision making within business organisations. 1- THE ROLE OF THE SHAREHOLDERS: There are no shares in the sole trader and partnership ownership; that is why shareholders do not apply in these two types of businesses. In Private Limited Companies‚ there must be at least two shareholders but no maximum number. The principal
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Question a) What are the responsibilities of a company? Martin Friedman believes that businesses do not have any moral obligations or social responsibilities at all‚ other than to maximize their own profit. This view is called “Shareholder Theory”. Friedman argued that a company should have no social responsibility to the public or society because it’s only concern is to increase profits for itself and for its shareholders. He states that‚ when companies concern themselves with the community
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Revenue and sales maximization Revenue maximization Maximizing sales revenue is an alternative to profit maximization and occurs when the marginal revenue‚ MR‚ from selling an extra unit is zero. The notion that business firms (especially those operating in the real world) are primarily motivated by the desire to achieve the greatest possible level of sales‚ rather than profit maximization. On a day-to-day basis‚ most real world firms probably do try to maximize sales rather than profit. For firms
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One of the most widely used concepts in finance is that shareholders require a risk premium over bond yields to bear the additional risks of equity investments. While models such as the two-parameter capital asset pricing model (CAPM) or arbitrage pricing theory offer explicit methods for varying risk premia across securities‚ the models are invariably linked to some underlying market (or factor-specific) risk premium. Unfortunately‚ the theortical models provide limited practical advice on establishing
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Memo to Shareholders – Carpino Company To: Shareholders‚ Carpino Company Inc. From: Subject: First Year Performance of Carpino Company Introduction Upon completion of Carpino Company’s first year of business‚ it is with great satisfaction that I present to you the year end Cash Flow Statement and analysis for the period ended January 31‚ 2007. You will notice the statement as presented shows in detail the various operating‚ investing‚ and financing activities of the organization. Analysis
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2015 1. What is Profit Maximization using TR-TC Approach? Profit Maximization using TR-TC Approach is a method in determining the Profit and the Loss of a certain Company. To obtain the profit maximizing output quantity‚ we start by recognizing that profit is equal to total revenue (TR) minus total cost (TC). Given a table of costs and revenues at each quantity‚ we can either compute equations or plot the data directly on a graph. (Lipsey‚ 2011) Figure 1.Illustration of Profit Maximization using
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1. What are the goals of archaeology? The goals of archaeology are to find historical things and find out events that have happened. 2. What is culture? Culture is the arts and other manifestations of human intellectual achievement regarded collectively. 3. How is the archaeological record used to date artifacts? Some archaeologist use carbon rating. 4. Describe the process of archaeological research. The process of archaeological research would be going through land research‚ knowing pinpoints and
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PROBLEMS AND ISSUES IN IMPLEMENTING OF RA 9344 OF ISABELA Chapter I INTRODUCTION I.BACKGROUND OF STUDY Children often test the limits and boundaries set by their parents and other authority figures. Among adolescents‚ some rebelliousness and experimentation is common. However‚ a few children consistently participate in problematic behaviors that negatively affect their family‚ academic‚ social‚ and personal functioning. These children present great concern to parents and the community at large
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The power of shareholders. ‘’Being shareholders has two sides‚ One side is being a financier of the company. The financer is mostly a investor looking for a place to drop his money and make money. On the other side the shareholder is the owner of the company’’ - Peter Blom‚ CEO Triodos Bank. This is a sustainable bank founded in the Netherlands and also located in the United Kingdom‚ Belgium‚ Germany‚ Spain and France. In this company I did my internship in the fall semester of 2013. It is a
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name Date assignment is due Title Desire of wealth in ‘The Necklace’ by Guy De Maupassant and ‘Neighbors’ by Raymond Carver Desire of wealth can be considered as the principal cause of the chaos in the world. Desire for wealth makes our society a real pandemonium. Desire for wealth triggers innumerable problems in the life of human beings. Absence of desire for wealth would have made this world a real paradise. Desire for wealth made human beings devalue relationships‚ health‚ morality
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