SU MBA6010 2019 JUNE Week 1 Discussion Latest
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?
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?