650 questions 1 and 2 Assignment Example | Topics and Well Written Essays - 500 words

650 questions 1 and 2 - Assignment ExampleSo no, avoiding unethical or illegal behavior had better not be in conflict with the goal of the firm unless its executives wish to find themselves facing prosecution. Yet Lockheed found itself in hot water many years with the US Government for giving bribes to foreign officials, even though it was accepted practice in the host countries.The very nature of a corporation develops an agency relationship between the stockholders and management. An article in the Yale Law School Repository shows the problem develops when the upper managements ideas of running the troupe begins to conflict with the wants of its real owners, the sh beholders, whose main goal is making money. It specifically mentions such things as country club membership and private use of the corporate jet. Unless those perks are contracted and part of the executives bonuses, such personal joys would be illegal and a definite conflict of interest (Macey). einsteinium Coast Yacht s has a very entangled cash flow. If it costs $435 million to have $617 million in sales of its boats, that would mean each quarter the caller-up would need in excess of $ blow million just to continue its manufacturing process. How they have been managing thus far and still continue to pay almost $18 million in dividends in 2008 is amazing. all in all it would take is one market dip for the company to be headed for financial trouble. However it is true that the average luxury sea craft buyer has littler concern for economic downturns, as the sales figures for super yachts have shown to have grown astronomically during one of the worst periods of recession since the Great Depression (Boat).It seems that East Coast has grown considerably, in that assets increased $40 million between 2009 and 2010. With a net $17.8 million growth in debt in the current year, the company raised much needed capital. Ms Warren has admitted that poor planning has led to a volatile situation.