Solved: Corporate managers work for the owners of the corporation, Finance Basics

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Corporate managers work for the owners of the corporation

1. Corporate managers work for the owners of the corporation. Consequently, they should make decisions that are in the best interests of the owners, rather than in their self-interests. What strategies are available to shareholders to help ensure that managers are motivated to make decisions in the interest of shareholders?

2. What does it mean to "maximize the value of the firm"? In general, how is value created? What factors determine value and how does each affect the value of the firm?

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Finance Basics: Corporate managers work for the owners of the corporation

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