Intro to Business Assignment 2 Coursework Example | Topics and Well Written Essays - 500 words

Intro to Business Assignment 2 - Coursework ExampleWe realize that this shall ultimately benefit our set customers and lead to a stronger reputation of our business in years to come. Your co operation in this control shall be highly appreciated. Sincerely, Mr. ABC Topic B In corporations, the interests of the stockholders atomic number 18 largely protected by the Board of Directors who are appointed by the former to take decisions in favor of them. The Board of Directors are paid handsome amount including stock options, compensation packages etc. and are appointed under fiducial obligation that entices them to run the company in a way that benefits the stockholders. However, as far as the legitimate obligations are concerned, the penalty for not acting in the interests of shareholders varies because of difficulties for the Court in assessing the decision taken (Lawrence & Weber, 2010). The accompaniment that shareholders vote for the Board of Directors makes the latter liable to perform in the interests of the former because if that doesnt happen therefore the shareholders have the power to dismiss the directors. The concept is similar to that of voting under democracy.