Brealey 5ce - solutions to suggested problems chapters 1-5. Chapter 1: takeover defenses make it harder for underperforming managers to be removed by dissatisfied shareholders, or by firms that might attempt to acquire the firm. For example, if you own ,000 of gm stock and can increase the value of the firm by 5 percent, a very ambitious goal, you benefit by only: (0. 05 ,000) = In contrast, a bank that has a multimillion-dollar loan outstanding to the firm has a large stake in making sure that the loan can be repaid. It is clearly worthwhile for the bank to spend considerable resources on monitoring the firm: this website provides information on the various types of business structures. However, to find out some details on rules and regulations, ask your students to go http://www. canadabusiness. ca/eng/guide/1282/. On this page are links to various provincial sites for registering sole proprietorships and partnerships and also registering corporations.