Discuss the ethical aspects of a minority-controlling share structure.
A minority controlling shareholder (MCS) situation can occur when a firm issues two types of shares that have equal cash flow rights (through dividends) but unequal voting rights (because one class of shares carries more votes per share than the other class of shares). A MCS is a shareholder who has a minority cash flow interest in the firm but a majority voting interest. The ethical aspects of a MCS situation is that there is the possibility that the MCS can take advantage of the other (majority) shareholders by extracting either pecuniary or non-pecuniary private benefits at the expense of the other shareholders. For example, a MCS, who is also the CEO of the firm, can pay high cash compensation to the CEO. A MCS can derive non-pecuniary benefits by naming the firm after the MCS, or by directing resources to fund private projects at the expense of the firm’s core business.
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As a general rule, it is much better to use ______ in a performance appraisal than it is to use traits.
A. motivations B. behaviors C. narratives D. biases
Discuss the limitations of the lifetime learning credit. Briefly explain how AGI affects the amount of credit available.
What will be an ideal response?
Macro-marketing
A. is a set of activities performed by individual firms. B. tries to produce discrepancies of quantity and discrepancies of assortment. C. tries to effectively match supply and demand. D. focuses on the activities of individual organizations.
In Sales Distribution Corp. v. Consumer Products Co., the court decides that a precedent is incorrect or inapplicable. The court
A. may rule contrary to the precedent. B. must apply the precedent. C. must ask a higher court to rule on the case. D. must refuse to decide the case.