FINANCE FOR MANAGERS

ASSIGNMENT 1 CHAPTER 1
Name Muhammad Asif Gulzar
ID 30615
Question # 1: If a companies had an objective of maximizing
shareholders wealth, would people overall tend to be better or worse
off?
Answer: The people overall tend to be worse off because the company
want to increase the wealth of shareholders not to increase the welfare for
the people.
Question # 1: Should the managers of a company own sizable
amount of common stock in the company.
Answer: yes, it is better for a company that its manager own the share in
the company because than manager will work hard for maximize the profit.
What are pros and cons?
Pros An argument or consideration in favor of something.
Cons One who supports a proposal or takes the affirmative side in a
debate.
What is Corporate Governance? What role does a corporation’s board
of directors play in corporate governance?
Answer: Corporate governance is the system by which companies are
directed and controlled. Boards of directors are responsible for the
governance of their companies.
Corporation’s board of director’s play in corporate governance is to appoint
the directors and the auditors and to satisfy themselves that an appropriate
governance structure is in place.