Chapter 4-Financial Goals & Corporate Governance

Question 1

Public Enterprise

Answer 1

Owned by government or state

Question 2

Private Enterprise

Answer 2

Owned by a private individual or organization

Question 3

State-Owned Enterprise

Answer 3

Any organization or business which is owned (in-whole or in-part) and controlled by government, typically created to conduct commercial business activities.

Question 4

Agency Problem

Answer 4

The costs and risks of aligning interests between shareholders of the firm and their agents, management, in the conduct of firm business and strategy.

Question 5

Shareholder Capitalism

Answer 5

The corporate goal of maximizing the total value of the shareholders’ investment in the company.