The role of incentives when the manager does not act as per the best interest of company’s shareholders. Introduction: The major goal of the firm is the maximization of stock value. In order to maximize the stock value, the financial manager implements the necessary actions that result in the maximum gain without taking into the future consequences. An authorized person who acts on the behalf of another person or investor to buy or sell securities is termed as agent . The person who appoints the agent is termed as principal.

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Answer 1

Question

Chapter 1.2, Problem 1.9RQ

Summary Introduction

To discuss: The role of incentives when the manager does not act as per the best interest of company’s shareholders.

Introduction:

The major goal of the firm is the maximization of stock value. In order to maximize the stock value, the financial manager implements the necessary actions that result in the maximum gain without taking into the future consequences.

An authorized person who acts on the behalf of another person or investor to buy or sell securities is termed as agent. The person who appoints the agent is termed as principal.

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Answer 2

Question

Chapter 1.2, Problem 1.9RQ

Summary Introduction

To discuss: The role of incentives when the manager does not act as per the best interest of company’s shareholders.

Introduction:

The major goal of the firm is the maximization of stock value. In order to maximize the stock value, the financial manager implements the necessary actions that result in the maximum gain without taking into the future consequences.

An authorized person who acts on the behalf of another person or investor to buy or sell securities is termed as agent. The person who appoints the agent is termed as principal.

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Answer 3

Question

Chapter 1.2, Problem 1.9RQ

Summary Introduction

To discuss: The role of incentives when the manager does not act as per the best interest of company’s shareholders.

Introduction:

The major goal of the firm is the maximization of stock value. In order to maximize the stock value, the financial manager implements the necessary actions that result in the maximum gain without taking into the future consequences.

An authorized person who acts on the behalf of another person or investor to buy or sell securities is termed as agent. The person who appoints the agent is termed as principal.

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Answer 4

Question

Chapter 1.2, Problem 1.9RQ

Summary Introduction

To discuss: The role of incentives when the manager does not act as per the best interest of company’s shareholders.

Introduction:

The major goal of the firm is the maximization of stock value. In order to maximize the stock value, the financial manager implements the necessary actions that result in the maximum gain without taking into the future consequences.

An authorized person who acts on the behalf of another person or investor to buy or sell securities is termed as agent. The person who appoints the agent is termed as principal.

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Answer 5

Chapter 1.2, Problem 1.9RQ

Summary Introduction

To discuss: The role of incentives when the manager does not act as per the best interest of company’s shareholders.

Introduction:

The major goal of the firm is the maximization of stock value. In order to maximize the stock value, the financial manager implements the necessary actions that result in the maximum gain without taking into the future consequences.

An authorized person who acts on the behalf of another person or investor to buy or sell securities is termed as agent. The person who appoints the agent is termed as principal.

Answer 6

Chapter 1.2, Problem 1.9RQ

Summary Introduction

To discuss: The role of incentives when the manager does not act as per the best interest of company’s shareholders.

Introduction:

The major goal of the firm is the maximization of stock value. In order to maximize the stock value, the financial manager implements the necessary actions that result in the maximum gain without taking into the future consequences.

An authorized person who acts on the behalf of another person or investor to buy or sell securities is termed as agent. The person who appoints the agent is termed as principal.

Answer 7

Chapter 1.2, Problem 1.9RQ

Summary Introduction

To discuss: The role of incentives when the manager does not act as per the best interest of company’s shareholders.

Introduction:

The major goal of the firm is the maximization of stock value. In order to maximize the stock value, the financial manager implements the necessary actions that result in the maximum gain without taking into the future consequences.

An authorized person who acts on the behalf of another person or investor to buy or sell securities is termed as agent. The person who appoints the agent is termed as principal.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 1.1 - What is the goal of the firm and, therefore, of...Ch. 1.1 - For what three main reasons is profit maximization...Ch. 1.1 - What is risk? Why must financial managers consider...Ch. 1.1 - Is maximizing shareholder wealth inconsistent with...Ch. 1.2 - What are the main types of decisions that...Ch. 1.2 - Prob. 1.6RQ Ch. 1.2 - Prob. 1.7RQ Ch. 1.2 - What are the major differences between accounting...Ch. 1.2 - Prob. 1.9RQ Ch. 1.3 - Prob. 1.10RQ

Solution Summary: The author explains the role of incentives when the manager does not act as per the best interest of company's shareholders.

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