on requesting the shareholders to pay for their shares. In doing so we will be examining three important theory that governing this justifications which is the fraud theory, trust fund theory and the contract theory. The ‘holding out theory’ which also referred as the fraud theory. The fraud theory was first derived from the case of Hospes V.North-Western Manufacturing and Car, in which it was held that misrepresentation provides the ground upon which the liability of shareholders to pay-up for the
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2007 to 2011, we examine whether foreign institutional investors with more than 5% of a company's shares can exert a significant impact on dividends. In addition, we investigate if more shares that foreign institutional investors have over major shareholders and the more shares that foreign institutional investors have over the previous year, the stronger the impact of foreign institutional investors have on corporate dividend policy. This study empirically shows the impact of foreign institutional
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The evolution of the culture of our corporations has evolved in many ways and for many reasons. There were many different factors that played an important role in developing the change in the evolution of corporations. Societal and cultural influences played a major role in the early development of the objectives and reason for existence of corporations. Political forces have and will continue to play an influential role in the structure of corporations and the responsibilities corporations have
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Assignment 3 LONG TERM INVESTMENT DECISION The grocery food market is filled with various options for microwavable food depending on the preferences of the consumers. Instead of the traditional use of the oven many families now use the microwave because of their busy lifestyles. The variety of healthy low calorie -microwave food has made shopping much easier for today’s busy consumer. Low calorie labels are regulated by the Food and Drug Administration (FDA) and require food “labels claiming low-calories
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The goal is to determine which option does the most good by using utilitarianism theory. In Option A, shareholders will receive identical numbers of New-Kleen (NK) shares in lieu of TideeKleen (TK) shares. The value of an NK share will be around $50 in comparison to TK’s share, which is presently being traded at $30. Shareholders, such as Halo Fund, will obviously benefit by gaining more return. Moreover, NK will be operating with new machinery and making use of green initiatives, which could
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Freeman and opposing views from Milton Freidman and John Boatright. Edward Freeman, having a Kant view, sees Project Share as contributing value to the various groups that are connected to NYSEG including shareholders. Project Share is consistent with its fiduciary responsibility to its shareholders. Project Share utilizes non-maleficence, beneficence, justice, and autonomy by ensuring that customers who cannot pay their bills on time have financial aid. This also creates value for NYSEG by becoming
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HBS Professor Michal C. Jensen, many managers are caught in between the desire to maximize the value of their companies and the demands of “stakeholder theory” to take into account the interests of all the stakeholders in a firm. It is already agency problems arise within a firm whenever managers incentives to pursue own interests at the shareholder expense. This is common knowledge in the business world. There have also been devises and mechanisms that have been created to reduce these problems such
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Defining the Issues/Problem Statement: Introduction Arauco was formed in 1979 when two construction companies merged together to become one. A year after Arauco had already begun expanding, which included “purchasing land and plantations and the installing new technology.” The early expansion of Arauco paid off because the end result of expansion was tremendous. During the 1990s, Arauco introduced new systems and product lines to support more growth. By the early 2000s, Arauco was one of the world’s
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of stakeholder orientation versus shareholder orientation, and the level of cultural secrecy on individuals’ perceptions of earnings management practices. Examining perceptions from 1,260 participants from 13 countries indicates that individuals from stakeholder-oriented institutional backgrounds were less accepting of earnings management, including both accounting earnings management and operating earnings management activities, than participants from shareholder-oriented institutional backgrounds
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THEORY 1. A partner’s capital account is a permanent account. TRUE 2. A negative partner’s capital account is possible. This can be eliminated through additional capital contributions. TRUE 3. “Loans to Partner” account is always assumed to be for current purposes. FALSE 4. If there is an industrial partner, deduct first his share in earnings then treat the remainder as 100% to be shared by the remaining partners. TRUE 5. An industrial partner can legally share from partnership
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