Business Economics

1 . IntroductionCorporations are legal entities , which while being still of natural persons exist completely separate from them . This separation gives them unequalled powers that other legal entities lack . The term also a good deal refers specifically to business corporations formed through the establishment of spliff stock companies incorporated by law to carry prohibited specific business activities (Corporation , 2006Business corporations have certain unique characteristics tending(p) to them under law that include limited liability of shareholders , ownership of assets and perpetual life . These characteristics establish their existence completely independently from the individuals who provided the finances to bring them into existence in the first precedent . These corporations are goerned by complex mechanisms through managements who are paid salaries to carry out their normal functioning . The authority of shareholders over the corporations is thus executed through their control over managements that sketch to them periodically on the functioning of respective companies . In many another(prenominal) cases controlling shareholdings in corporations are held by specific families or closely knit groups of individuals , thus giving them a much control and a larger say in the engagement of chief executives and thus by extension in the trading operations of these organisations . However , as corporations become larger it is very park for shareholding to get dispersed over a large clay of shareholders thus leaving the control of corporations , to a large take in the hands of senior managers who become responsible for the operative and financial results of these organisationsIn such cases , where corporations are , in effect , force by salaried managers who may have very secondary or no shareholding in the businesses they run , their actions are governed by very complex , inter related and often self-contradictory motives that include , inter alia , remuneration , job security , military operation incentives , propensity to take risks , trade-offs between moving into uncharted areas and staying with cognise business parameters and a host of other such factors , hearty , personal and business .

This issue has now become more(prenominal) complex because of the enormous growth of Multinational Corporations that straddle the human beings , operate out of different countries and have revenues in extra of many nations Corporate managements are effectively responsible not only for operating the organization but also for strategical decisions concerning investment finance , internal growth and diversification , boodle retentions and acquisitions . Business corporations have displayed a capacity for persistent , if untypical , long-term growth in size , and in consequence have grown enormously . For example , of the 100 largest economies in the world , 51 are corporations while only 49 are countries (Shah , 2005 ) It is the objective of this assignment to analyse the various theories and the frame of literature that exist on the ultimate aims of business managers in the discharge of their professional responsibilities and try to arrive at approximately common ground2 . CommentaryA business corporation has specific aims that form the fundamentals and reference point of all the activities of the organisation . These aims form the understructure for the setting out of business objectives that become the stated measured target for achieving the business aims . For...If you want to get a practiced essay, order it on our website: Orderessay

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