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Unformatted text preview: Chapter 4 The share market and the corporation 1. A fundamental characteristic of a publicly listed corporation is the separation between owners and managers. Briefly discuss the rights, roles and responsibilities of the shareholders, board of directors and executive management. 2. Why might a business organisation seek listing as a publicly listed corporation? Include in your answer the advantages of the corporate form of business organisation. 3. Maximisation of shareholder value is a principal objective of an organisation. What is the relationship between this objective and the problems identified in agency theory? 4. A stock exchange provides a formal market that facilitates the flow of equity funds into the capital markets. Explain this flow-of-funds process from the perspective of a listed corporation raising equity finance. 5. Discuss the secondary market role of the share market and its importance to the corporation. Demonstrate your answer through the use of examples....
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- Three '10