Question 1: Discuss an aspect of the relationship between corporate financial management theory and the maximization of shareholder wealth.
Question 2: [O]ne might suppose that capital creates wealth - which is strange because a pile of capital sitting there creates nothing. Yet capital providers (stockholders) lay claim to most wealth that public corporations generate. Corporations are believed to exist to maximize returns to shareholders.' Kelly (2001)
Discuss whether a different assumption for the underlying purpose of the existence of public companies would be desirable, rather than maximization of shareholder wealth.