Shared Flashcard Set

Details

Strat. Man. Ch2
8/26
5
Management
Graduate
09/02/2009
Click here to study/print these flashcards.

Create your own flash cards! Sign up here.

Additional Management Flashcards

 

 

Cards

Term
Value Added
 Definition
=value of firm's output - cost of material inputs
Term
stakeholder approach
 Definition
the firm is a coalition of interest groups- it seeks to balance their different objectives
Term
The Shareholder approach
 Definition
the firm exists to maximize the wealth of its owners
Term
why is profit maximization a reasonable goal?
 Definition

1) Boards of directors legally obliged to pursue sharholder interests

2) To replace assets, firm must earn return on capital> cost of capital (difficult when competition intense)

3) To avoid acquisition, firm must achieve stock-market value >break-up value
Term
stopped on slide 4
 Definition
Supporting users have an ad free experience!