Individual Problem Set One

Individual Problem Set One - Individual Problem Set One...

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Individual Problem Set One Gary England Campbellsville University BA 620 – Managerial Finance Dr. Sunny Onyiri
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3. Who owns a corporation? Describe a process whereby the owners control the firm’s management. What is the main reason that an agency relationship exist in the corporate form of organization? In this context, what kind of problems can arise? The shareholders own a corporation. This can range from a single shareholder in a closely held corporation to hundreds of thousands of shareholders in a publicly traded company. A proxy fight or proxy battle is an event that may occur when a corporation's stockholders develop opposition to some aspect of the corporate governance, often focusing on directorial and management positions. In this aspect, the owners can control the firm’s management because they can replace existing management by utilizing a proxy fight. The main reason that an agency relationship exist is so that someone can represent the interest of the stockholder. Possible
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Individual Problem Set One - Individual Problem Set One...

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