Explain the separation of ownership and stewardship

Assignment Help Business Management
Reference no: EM132973761

Good corporate governance is very necessary because of the agency relationship that exists between the shareholders and the Board of Directors. Since ownership is separated from stewardship, it is important that the Board is guided by good governance principles in its conduct of its business. This is to ensure proper accountability to the shareholders. However, in the case of many small and medium enterprises (SMEs), the founder of the company owns most of the shares and manages the business full-time in a very hands-on manner. Is it correct to say that in the case of SMEs, good corporate governance is not relevant because in essence there is no separation of ownership and stewardship?

Reference no: EM132973761

Questions Cloud

Applications of social innovation and entrepreneurship : Please provide and discuss applications of social innovation and entrepreneurship
Describe the importance of motivation : 1. Provide two sources of stress on the job. How can you manage the stress? 2. Describe the importance of motivation.
Seven principles of lean six sigma : Explain and differentiate between the 5 principles of lean and the seven principles of Lean Six Sigma
Explain the function of certification trade mark : 1) explain the function of certification trade mark and how 'new zealand made' contributes towards this
Explain the separation of ownership and stewardship : Good corporate governance is very necessary because of the agency relationship that exists between the shareholders and the Board of Directors.
Develop a customer service guide : As a clinical coordinator how to develop a customer service guide that outlines the expectations of dental practice's reception and patient contact staff in pro
What does government policy do for young people : What does government policy do for young people? With regard to youth work, what can government policy support? Provide at least ten examples.
Cooperation between a firm and buyers : Cooperation between a firm and its buyers can lower firm costs and raise the value delivered to the buyers
Describe the two types of economic factors : List and describe the two types of economic factors that can affect game attendance. Can anyone provide me with some assistance as it relates to sports marketin

Reviews

Write a Review

Business Management Questions & Answers

  Classical leadership styles exemplifies the company

Which of the classical leadership styles exemplifies this company? What is the added value of this leadership style?

  Provide a overview of how amazon

Provide a overview of How Amazon, Apple, Facebook and Google manipulate our emotions.

  Describes several types of behavioral reinforcement

Explain how classical conditioning works differently than operant conditioning. Describes several types of behavioral reinforcement.

  Identify some of the potential benefits and costs

Identify some of the potential benefits and costs that need to be considered in developing an e-business strategy.

  List 10 iso certificates that are applicable

List 10 ISO certificates that are applicable to this company and in which departments/areas in the company

  Manufactures computer hard drives

Jeppson Company manufactures computer hard drives. The following data is related to sales and production of the computer hard drives for last year

  Vision essential to facilitating successful change

Why is vision essential to facilitating successful change in an organization?

  Environmental analysis of organisation from modernist

What are the major differences between conducting an environmental analysis of an organisation from a modernist perspective compared to a symbolic-interpretivist perspective?

  Conceptualization of one major problem

A conceptualization of one major problem the new IT programme may face; a clear research question or hypothesis and research objectives; a research strategy which includes a description and justification for the proposed data collection, analysis ..

  What are thoughts on topic

Ethics are what it all comes down to and it starts from the top down. If a company is run by top management that are not ethical then the employees

  Director of human resources for a small rural

You are the newly-hired director of human resources for a small rural acute care hospital. You've been on the job for just 3 months

  Brief description of the business you are choosing

Read the MBA Capstone Project Guidelines document, paying careful attention to the template and example of a proposal located in Appendix A.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd