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strategic financial management
Essay specific features
Written by:
Craig J
Date added:
October 28, 2013
Level:
University
Grade:
B
No of pages / words:
8 / 2179
Was viewed:
4156 times
Rating of current essay:
Essay content:
build a new supermarket or factory.
2. How should the firm pay for those investments?
? Sources of finance, i.e. where should the money come from?
o e.g. Should the supermarket or factory be financed by borrowing money from the bank?
Diagrammatic overview of a public limited company
Stakeholder:
A party with an interest in an organisation (Arnold, p...
displayed 300 characters
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a shareholder, and an agent of the principal, e.g., the company's manager." (BMA, p.995)
Key issues:
? Divergence of ownership and control
? The goals of the managers (agents) differ from those of the shareholders (principals)
o What will managers wish to maximise?
? The risk attitude of managers may differ from that of the shareholders
? Asymmetry of information
Agency costs: "The direct and indirect costs of attempting to ensure that agents act in the best interest of principals as well as the loss resulting from failure to get them to act this way...
displayed 300 characters
General issues of this essay:
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