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12 Cards in this Set
- Front
- Back
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maximizing returns to shareholders
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maximizing long run profitability and profit growth
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stockholders
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legal owners and the provider of risk capital
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agency relationships
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arise whenever one party delegates decision making authority or control over resources to another
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principal
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person delegating authority
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agent
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person to whom authority is delegated
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the agency problem
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agents and principles with different goals
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governance mechanisms
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serve to limit the agency problem by aligning incentives between agents and principals and by monitoring and controlling agents
board of directors financial statements |
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strategic control systems
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establish standards against which performance can be measured
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balanced scorecard
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used to drive future performance
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tort laws
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governing product liability
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contract law
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contracts and breaches of contracts
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antitrust law
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governing competitive behavior
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