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12 Cards in this Set

  • Front
  • Back
maximizing returns to shareholders
maximizing long run profitability and profit growth
stockholders
legal owners and the provider of risk capital
agency relationships
arise whenever one party delegates decision making authority or control over resources to another
principal
person delegating authority
agent
person to whom authority is delegated
the agency problem
agents and principles with different goals
governance mechanisms
serve to limit the agency problem by aligning incentives between agents and principals and by monitoring and controlling agents


board of directors
financial statements
strategic control systems
establish standards against which performance can be measured
balanced scorecard
used to drive future performance
tort laws
governing product liability
'
contract law
contracts and breaches of contracts
antitrust law
governing competitive behavior