1. The Goal of Financial Management

Discuss the Goal of Financial Management! (must be 100 words include reference)

2. Agency Problems

Discuss agency problems in modern corporations with consideration of the following issues:

1. How does a principal-agent relationship form? (50 words)

2. What major problems do exist between shareholders and top managers? (50 words)

3. What devices do shareholders use to control agents? (50 words)

4. Is there a conflict between large shareholders and small shareholders? (50 words)

5. Do you think the current practice of executive compensation is working well to reduce agency problems? Why? (100 words)

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