Wexly is a large publicly owned corporation which you are the president. When making decisions, do you make them to maximize stockholders’ wealth or for your personal gains? What actions could stockholders take to make sure the interest of both parties is served? What can influence management’s actions?
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To ensure that the parties in a company are well considered, the shareholders can only do one thing, to safeguard their interests, they can elect representatives who are part and parcel of the decisions which are made in a company. Proposing policies which limits the decisions that the management can make without consulting the shareholders also serves the interests of both parties.
The management actions in making decisions can be influenced by various factors, these include the competitors, political environment, technological changes and the availability of resources for the company to effect the decisions made.
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Nov 13th, 2015
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