The corporation’s money magically becomes the stockholders’ money” (Denning). What the author failed to realize is that the shareholders bought into the company, and are now owners of the company. That is how the corporation’s money somehow became the shareholder’s money. Making money will always be a corporation’s primary goal whether they want to admit it or not. But that does not necessarily mean they will ignore their social responsibility.
To go public is defined as the process of selling ownership in a company to the public. And the companies use investment banks to raise money by selling shares of stock to investors so that the company can then use the money to grow their operations. Pros Going public is a quick way for a company to get access to a lot of money. The benefits of going public are that it raises money from the company and makes it easier for employees to cash in and out of their shares. There are several main advantages of going public.
FI515_Homework1 Mini Case (p. 45) a. Why is corporate finance important to all managers? Successful companies must be able to generate enough cash to compensate the investors who provided the necessary capital. In order to do this managers must be able to evaluate any proposal, whether it relates to marketing, production, strategy, or any other area, and implement only the projects that add value for your investors. For this, you must have expertise in finance.
Something else to be considered is that when a company uses money for share repurchases when it could be paying a higher dividend instead, the company’s management is limiting your control and increasing theirs. As a shareholder in a company that makes uses of share repurchases, you have to rely on management’s ability to judge whether it’s an appropriate time to repurchase shares, whereas with your dividend, you have complete control over that choice. The flexibility of dividends for shareholders is great, because if allows you to direct your flow of income to where you think the best investment opportunities are at any given time. Share repurchases lack that
- Thirdly, an aim of Subway would include overtake their competitors in the market so that their company name can rise, this would give them a good name and reputation. - Fourthly, an aim of Subway is for their company to reach breakeven point. Reaching breakeven point would mean that the company is not making a loss and will be making some sort of profit in the future. - Finally, the ultimate and main aim of Subway is to maximise their profits, profit maximisation is important to all private sector businesses. How does strategic planning help Subway?
This happens to be one of J.L. Nick’s strengths and is one of the many reasons that they are successful. The reason they have the ability to build relationships is due to the fact that as a company they have a very good reputation and are a well respected team. Clients they have worked with before, have given the company great feedback. Their employees are very good at what they do; they perform their tasks in a timely fashion, and work efficiently and effectively to get the results that they promise their clients.
1 Zappos Analysis The core of Zappos’ culture lies behind two underlying values. The first is to please the customer and the second is to please the employee. Zappos’ success is due to Tony Hsieh creating a company culture that depends on the implementation of these two ideas. According to Bauer & Erdogan, “organizations that have a rare and hard-toimitate organizational culture benefit from it as a competitive advantage.” Tony showed us he was a visionary because he was able to recognize the value behind a strong company culture, despite other initial investors overlooking this detail of the company. Zappos’ leadership would agree with this statement since they believe their company culture is the differentiator.
Disadvantages: Limited life, unlimited liability, difficult to raise capital * Partnership – Roughly the same advantages and disadvantages as a sole proprietorship. * Corporation – advantages: unlimited life, easy transfer of ownership, limited liability, ease of raising capital. Disadvantages: double taxation, cost of set-up and report filing c. How do corporations go public and continue to grow? * A company goes public when it sells stock to the public in an initial public as the firm grows, it might issue additional stock. What are agency problems?
As said in the textbook job satisfaction has a direct affect on customer satisfaction and the profitability of a company so if Foreman’s course can do what is pledges then it could have a positive effect on Albertsons profitability. 2. Positive worker attitudes have a large effect on the success of a business. Workers who come to work happy will work harder and do more to improve the company because they feel connected and pleased with their job. If a worker is not happy with their job they will not feel the need, or want to put in the extra effort to try and improve the areas of the company that need improvement.
Factors that have been particularly favorable to Marks and Spencer in diversifying its retail businesses into financial services (lending, pension, life, assurance etc.) , • Good image and reputation of the company. A company's image is what makes it stick in the minds of potential customers. It's so important because your image instantly tells all your customers and vendors what kind of company you're running. If your image is excellent, it will make your company stand out from its competitors.