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The world of business is large, complex, continuously shifting and evolving. Therefore, the intentions of business decision makers are not always known.For Capitalism to succeed, Japanese Language Translation managers must look past recent scandals like Enron, GE, and the current Financial Crisis and continue to believe that most business decisions are made to strengthen the value of a corporation’s stock. While stock price should be weighted most importantly, and there are often other factors that play into how business decisions are made. For instance, a corporate leader might consider how his actions will influence his own wellbeing, the wellbeing of fellow workers and perhaps society in general. Regardless of the number of factors that are considered when making a decision, stock price maximization should be regarded as the most important. It is the responsibility of an Arabic Translation corporation’s stockholders to elect management team members to lead the organization in a way that maximizes stockholder value. Because stockholders elect the management team, management must uphold the wishes of stock owners..

However, the stock of large corporations are often controlled by large holding groups that sometimes have different interests in mind. Consequently, it would be impossible for managers to always act in a manner that pleases all stockholders. However, this can sometimes result in the adoption of policies that aren’t always in the best interest of profit maximization. Sometimes, managers make decisions that intentionally don’t maximize the value of the stock. For instance, a management team may decide to make larger 401K contributions, expand employee benefit programs or invest in new office furniture or landscaping.

As you can imagine, it can be quite difficult to monitor the activities of the corporate decision makers in order to ensure they are pursuing the desires of stock holders. That’s why it is so difficult for a Russian Language Translation stockholder to determine if certain programs really benefit the value of the stock or are just wasteful. But as mentioned previously, managers of corporations must act in a way that is desirable by stockholders or they risk being replaced by people more capable of serving the needs of the stockholders. In cases where the management team has not acted in the best interests of stockholders, there have been hostile takeover attempts and proxy fights.

A hostile takeover is defined as a takeover which goes against the wishes of the target company’s management and board of directors. Opposite of friendly takeover. Hostile takeovers usually occur when the stock price is considered low. As a result, the management team will try to make the stock expensive or unattractive to potential buyers.

Corporate leaders must also make a choice between their commitments to being socially responsible in lieu of profit maximization. Such questions as whether a company should forgo charitable contributions and outstanding employee benefits must be weighed against maximizing the value of stock.

There is little doubt that corporations have a moral obligation to provide a clean, safe working environment and to do their best to be good corporate citizens by not polluting the earth. However, socially responsible actions have costs, and it is questionable whether businesses would incur these costs voluntarily. Obviously, if some firms engage in such socially responsible behavior while others do not then there is a possibility that some companies will be at a competitive disadvantage.