Shareholder

basically the governing body that facilitates the interaction between the principles and the agents. The principles or shareholders, are the entities which bring the resources to the firm from investments. The agents on the other hand are the people who utilize the resources of the principles to conduct their day to day operations to drive growth and value to the shareholders. All of the principles and agents have different expectations, needs and interests so therefore the board of directories…

S-corporation is subject to single-level taxation, much like a partnership. Stacey’s earnings would be accounted for at the corporate level, but is taxed only at the shareholder level. The C-corporation is subject to double taxation. Stacey’s earnings would be taxed first at the corporate level when earned and then again at the shareholder level when it’s distributed as dividends. Applicable Law: US Tax Code Section 11- A tax is hereby imposed for each taxable year on the taxable income of…

De Kluyver starts with the description of shareholders. Shareholders own companies but do not run companies. Instead, they elect directors to appoint managers to run the companies. Different shareholders have different goals for the corporations. However, “the welfare of shareholders should be the primary goal of the corporation stems from shareholders’ legal status as residual claimants” (De Kluyver, p3). Then he mentions that corporate law was…

rejecting a project with an NPV equal to zero or an IRR equal to the cost of capital because such an investment would not change shareholder wealth. The cost of capital is the discount rate for the NPV and the hurdle rate for the IRR. The firm should accept the project because it has a positive NPV. However, the discounted payback method is inconsistent with shareholder wealth maximization because the method ignores some cash flows that contribute to the present value of investment. What…

avoid potential conflict between the directors and shareholders. In practicing good corporate governance, the five pillars of transparency should be implemented by the BOD of Polaroid’s in other to develop effective disclosure. For the first pillar of transparency which is truthfulness, information disclosed must provide accurate description of circumstances. These mean that, the BOD should disclose the detail about ESOP to the employees and shareholders as the decision made will affect both…

rational economic man of agency theory (Muth and Donaldson,1998). Meanwhile, stewardship theory argues that managers are not motivated by individual goals. In this perspective, they are business steward whose motivations are maximizing the benefits of shareholders. Managers are interested in achieving high performance and capable…

concentrates on management as well as on shareholder’s wellbeing . Internal as well as external corporate governance helps organization in board culture, their share price in market, future need for raising capital and the most important is to gain shareholders trust. The internal and external check upon the company’s management is maintain by the help of the process of audit and the role of auditors has to be a very concrete one in order to do the process and it goes without any saying that…

society, they may know very little about how their actions will affect society as a whole. Friedman also extends this line of reasoning towards the shareholders that own a company. If some of them attempt to hold a social responsibility other than to the mutual benefit of the shareholders, they are effectively imposing an unjust tax on the other shareholders and stealing their property. However, Friedman does concede that if a corporation has a sole proprietor then they are free to use their…

needs to hold high cash reserves. There were shareholders who expressed the desire for Linear Tech to return its cash, but this desire is not necessarily shared by all shareholders. Linear should not return cash to its shareholders since Liquidity levels are sensitive to the market, they should keep at least 200m$ to cover unexpected expenses and try to enable business opportunities in the Asian market. Linear should be ready to return to its shareholders when they are in a mature stage with…

Introduction There are three main business entities can choose to form in Malaysia which are Sole Proprietorship, Partnership and Limited and Unlimited Company. It is not so difficult to understand these types of entities and the owner can know which entities is more preferable to the owner. There are few steps in forming a sole proprietorship and a partnership entity. Firstly, determine the name of the organization which is unused by any business establishment or other entities. Register the…