1 If All Companies Had An Objective Of Maximizing Shareholder Wealth Would People Ov 2728241
1. If all companies had an objective of maximizing shareholder wealth, would people overalltend to be better or worse off ?2. Contrast the objective of maximizing earnings with that of maximizing wealth.3. What is financial management all about?4. Is the goal of zero profits for some finite period (three to five years, for example) everconsistent with the maximization-of-wealth objective?5. Explain why judging the efficiency of any financial decision requires the existence of a goal.6. What are the three major functions of the financial manager? How are they related?7. Should the managers of a company own sizable amounts of common stock in the company?What are the pros and cons?8. During the last few decades, a number of environmental, hiring, and other regulationshave been imposed on businesses. In view of these regulatory changes, is maximization ofshareholder wealth any longer a realistic objective?9. As an investor, do you think that some managers are paid too much? Do their rewardscome at your expense?10. How does the notion of risk and reward govern the behavior of financial managers?11. What is corporate governance? What role does a corporation’s board of directors play incorporate governance?12. Compare and contrast the roles that a firm’s treasurer and controller have in the operationof the firm.