Reference no: EM132611941

Question 1. Would our goal of maximizing the value of the equity shares be different if we were thinking about financial management in a foreign country? Why or why not?

Question 2. Can our goal of maximizing the value of the equity shares conflict with other goal, such as avoiding unethical or illegal behavior? In particular, do you think subjects like customer and employee safety, environment and general good of society fit in this framework, or are they essentially ignored? Think of some specific scenarios to illustrate your answer.

Question 3. Critics have charge that compensation to top managers in United States is simply too high and should be cut back. For example, focusing on large corporations, Ray Irani of Occidental Petroleum has been one of the best-compensated CEOs in United States, earning about $54.4 million in 2017 alone and $550 million over the 2013-2017 period. Is such amount excessive? In answering, it might be helpful to recognize that superstar athletes such as Roger Federer, Top entertainers such as Justin Bieber and Manny Pacquiao and many others at the top of their respective fields earn at least as much, if not a great deal more.

Question 4. Why should effective corporate governance be in place?

Question 5. Distinguish the role of an external auditor from the role of an internal auditor.Distinguish the functions of a controller from the functions of the treasurer.