Below are 2 topic on a discussion topics right a paragraph on each discussion
Please read the article from the following link:
https://www.businessroundtable.org/business-roundtable-redefines-the-purpose-of-a-corporation-to-promote-an-economy-that-serves-all-americans
Textbook says that the primary goal of managers should be to maximize the wealth of the shareholders.
Then, please share your opinion regarding the primary goal you believe that managers should pursue
The Enron Scandal is a very famous example of an agency problem. Its board of directors failed to fulfill its regulatory role and neglected monitoring managers they hired. As a result, the company became involved in illegal activity. It could also happen because executive managers and/or board of directors failed to represent shareholders’ interest.
Please do a short research on the Enron Scandal and discuss how we can minimize a gap between the interests of principals (shareholders) and agents (managers).
