Management and Organizational Studies 3370A/B Study Guide - Final Guide: Chicago Board Options Exchange, Data Room, Multinational Corporation

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 3370A/B
• Professor: Maria Ferraro

Document Summary

The science or study of the management of funds . The goal of the firm is to create value for the firm"s shareholders. Only in america is this the goal! Maximizing the price of the existing common stock. Good financial decisions will help increase stock price and poor financial decisions will lead to a decline in stock price. Management serves as an arbitrator and moderator between conflicting interest groups or stakeholders and objectives. Contractual claims get their money first, but they only get what"s due to them. Shareholders have residual claims against the company: they get what"s left, a l = e, as the company grows, they get more money. Exam keywords: stakeholder: stakeholder- any person who has a stake in the company- they have an interest in the success of the company. Stakeholders include creditors, managers, employees, customers, and shareholders: not all shareholders are stakeholders.