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MINI CASE P. 45 a) Why is corporal pay central to all managers? It helps managers to identify and select the right incorporated strategies and private projects that add value to the firm. It does provide managers with the tools to forecast the keep requirements of their compevery and plan out unique strategies for acquiring those funds. b) Describe the organisational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form. Proprietorship: Advantages alleviation of formation, some regulations, no corporate income tax. Disadvantages Limited life, unlimited liability, heavy to squinch up great(p) Partnership: similar to the sole proprietary in terms of advantages and disadvantages. Corporation: legal entity separate from its owners and managers. It needs to saddle with the state (charter, bylaws) Advantages unlimited life, limited liability, easier to raise capital and withdr aw ownership. Disadvantages double taxation and costs of setting up and cover up filing c) How do corporations go ordinary and continue to climb up? What are agency bothers? What is corporate governance? Initially by issue an IPO (initial overt offering) in rate to raise cash and later issuing additional debt and equity.

An agency problem is given due to a conflict of interests between managers and stockholders, with managers prosecute personal benefits instead of the stockholders benefits. corporal governance is the rules established to dominance the companys mien towards internal agencies (directors, managers, employees , etc) and external agencies (creditors, cus! tomers, competitors, etc) d) What should be the primary objective of managers? maximise shareholder wealth by increasing the stock swag (1) Do firms have any responsibilities to society at bighearted? Definitely, from several stand points, ethically, morally, as well as environmentally to name a few. great(p) corporations have to...If you want to get a full essay, order it on our website: BestEssayCheap.com

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