Discuss the theory behind maximizing shareholder wealth, including the relationship this has to corporate profits.
120563
When a company's revenues exceeds its expenses the company has a profit. All profits are reported to shareholders, financial institutions (those insituions who have an interest in the company) and others owners (owners who hold debt like bonds and debentures) on the companies Income Statement.  Now the company has two options to decide what to do with those profits. The company can decide to distribute those  profits to its shareholders, or they can keep them. They usually make this decsion at the company's annual meeting. The shareholders are the real owners of the company - when a company is started the shareholders give the company cash (so the company has an asset and the ability to "sartup") and in turn the shareholders get shares - pieces of paper representing ownerhsip - the ownership they have is represeted on the balance sheet called owners equity. \nWhen a company makes a profit and when those profits are kept them they are called retained earnings. Retained earnings are used to pay off old debt, other expenses etc. When a company gives its profits to shareholders they are called dividends. Certain shares have more rights when it comes to getting the dividens (ie preferred shareholders get their dividends before common shareholders). \nOnly  when a company maximizes is profits does it maxmimise the amount of those profits that it can pay to its shareholders. Makes sense because if you don't make any profit - because your expenses are more then your revenues then you really can't pay shareholders anyting. \nOne final thing, the more profit your company makes the more you can pay out to your sharholders - the higher payout = a higher dividend and shares with higher dividends are the most valued by investors (that is why those shares are so expensive).  So share price is related to coprorate profits as well.
146422
- buy back your own company stock\n \nreduces the ability of the acquirer to buy stock
556953
Profits. It,s more lucrative selling the plan than following it.
418024
This is a great company to invest in.....They are gaining market share. As an employee - if you are skilled - it might be a great Future. \n\nUsually rewards follow performance.   :o )
169781
Outsourcing is a gold mine for corporate shareholders. Corporations could outsource all of the complex computer language and software programming language to India and boost their profit margin to appease shareholders. That's what it's all about, pleasing the shareholders of corporations. They want to see profits on their investments. As far as living wages those who have low paying jobs are forced to work two jobs, 16 hours a day. It's not fair, but no one in power seems to want to help the powerless.
165555
profitability, financial condition and cashflow
47145
Profit/Loss?  see below
71097
Forget about 'rich dad..' It is a rubbish bestSELLER. The author just wanted to get rich... Any directions here would be useless. At least in theory markets are efficient and any really WORKING strategy (if anounced) will attract myriads of ambitious profit seekers like you. The opportunuty will be wiped out. The equilibrium will restore.\n\nTake introductory courses in finance and psychology. It may be useful to undermine your adolescent maximalism.\n\nAnd do not forget to vote for the best answer!
87495
Both. \n\nYou have to pay the owners of the company or you would have no one founding companies. You have to share the profits with the employees, or you would have no work force. You have to provide value to the customer, or you will have no customers.\n\nSeems to me that when the owner, employees, and customers are all doing well on your products and services, then you are making money AND serving the public good.
199445
Don't know this book... but;\n\nThere are no "simple ways to riches"... read the book, read many more books, learn from your loses (we all do) and grow rich slowly. The stock market is unforgiving to those looking for a get rich scheme.\n\nGood luck!
395020
make a comprehensive business/marketing plan.. dont forget to include of course the expected profit of the business.. and show to the the financual ratios.
312849
C. Risk.\n\nThe firm is more highly levered so a downturn might put them into bankruptcy.  There's no indication that they are using the money for useful purposes.  They could be using it to increase management's wealth or ego.
676053
This concept has been invented to describe the investment climate in China today  For an excellent discussion of this concept, see this article: \n"Sweet and Sour The trade-off between risk and reward can't get much bigger than in China, as these companies found. "\nhttp://www.cfo.com/article.cfm/2988452/c_2984287/?f=archives
331602
read "Think and Grow Rich"\n\nby Napoleon hill\n\n\nand thank me later
60751
The most important issue is revenue. They want to know where it will come from, what are similar companies generating for sales, and what should your company be able to sell. the next issue is profit margin, how much of that revenue will you have available to pay back the loan.
329092
Put together a business case detailing the savings to the company versus the cost of setting up the needed equipment. In the business case, unless your company pays your commute costs, leave out the cost of your commute. You need to show them while this will benefit *them*
475070
Ah, yes, the age old "but if I sell, the prices could go higher".  Sure, they can, and they can also go down.  If you sell and lock in your profits, prices could go higher.  But if you hold and and prices go down, you could find your profits quickly dwindling.  Can you see the future?  Do you have a crystal ball?\n\nThere are two emotions in the market that will kill you every time - fear and greed.  Fear keeps you out when you should be in and greed keeps you in longer than you should be.\n\nI'm not telling you to sell and lock in profits, but what do you think you should do?  In general, when prices take off that quickly, the down move is just a quick.  There is what is called "regression to the mean".  If you've locked in profit, be happy with it.  Believe me, I've learned from experience.  There were times when I should have sold to lock in my profits, but I got greedy and ended up losing a bunch when the prices turned.  If greed is keeping you holding on, that should be telling you something.  Could prices go higher?  Sure.  But there is an old saying "A bird in the hand is worth two in the bush".\n\nIf you believe you should absolutely hold for higher prices, then sell some of your options to lock in profits and let the others ride.  If prices continue higher, then you made more, but if they reverse, you haven't lost as much.