Shareholder wealth maximization refers to the corporate objective of increasing the value of the firm as reflected in the price of its shares, thereby maximizing returns to shareholders. This principle often drives managerial decisions and strategic planning.
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Executive compensation refers to the financial and non-financial rewards provided to top management of a company, including salaries, bonuses, stock options, and other benefits.
An agency relationship is a fiduciary connection in which one party authorizes another to act on their behalf in business or legal matters.
The objective of financial management refers to the primary aim or goal that guides all financial decisions within an organization.
The other forms of business are master limited partnership (MLP), professional corporation (PC), joint venture, and virtual enterprise.
A Limited Liability Company (LLC) is a business structure that protects its owners from personal liability and allows pass-through taxation.
A corporation is a legal entity that is separate and distinct from its owners, created under the authority of law.
Sole Proprietorship is a form of business ownership where a single individual owns, manages, and controls the entire business.
Partnership is a business structure where two or more persons share ownership, profits, and losses according to a mutual agreement.
A form of business enterprise refers to the legal structure or classification under which a business operates.