BA 242 Day1

BA 242 Day1 - -Rise of professional management class...

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BA 242 Day1 -Why do we allow business to exist in society? -Who do they serve, and among those they serve, who is of less advantaged -What social and ethical liabilities do businesses have? Business effects others (Community, Local, State, Federal gvt, Stockholders, Employees,  Customers) Business person What do you pay others What sort of business actions do you take in order to both advance your company, as well  as  operate ethically - Sole proprietorship- All risk/All profit Partnership- Profits split/Profit split Corporation- Artificial corporate “person” takes risk / profits go to stockholders - Individual Stockholders – Household owners Institutional Owners- Barneys, JP morgan, Lloyds
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Unformatted text preview: -Rise of professional management class Owners- Principle Management- Agent-Owners- Shareholder Provide money in exchange for share of company Institutional ownership is 60% of stock ownership Companies which make money gives out dividends Stock appreciation of value Social issues when returns even seem competitive Rights Right to sell Right to share in profits Right to annual reports Right to elect and hold board Everyone in corporation works for owners Bonds represent shareholders Senior management -> Management-> Employees Board of Directors- Legal objective to establish corporate objectives Board is set up to protect shareholders interests Principle/Agent problem...
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BA 242 Day1 - -Rise of professional management class...

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