Fundamentals of Corporate Finance (Special Edition for Rutgers Business School)
Fundamentals of Corporate Finance (Special Edition for Rutgers Business School)
11th Edition
ISBN: 9781308509853
Author: Ross, Westerfield, Jordan
Publisher: McGraw Hill
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Chapter 1, Problem 14CRCT
Summary Introduction

To critically think about: The act of the management is in the interest of the shareholders.

Introduction:

The managers of the firm act in the interest of the shareholders based on two factors. The goals of the management are aligned to goals of the shareholders, which is the first factor. The replacement of the managers for not pursuing stockholders goals is the second factor.

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