Management 2 Essay Example | Topics and Well Written Essays - 1250 words

Management 2 - Essay ExampleThe professorship outlines the activities and financial conditions of the firm in the previous year followed by his/her discussion on hopes and future plans for the firm. In this part of the annual report, the Chairman attempts to explain why the troupes operations resulted in the results mentioned and why it chooses to advance with new projects or policies. In a nutshell, the statement or report is mainly a promise or definition for company activities by the Chairman and its Board of Directors to the stockholders.However, the questions are Why do they need the reports? What do the stockholders do with them? And more importantly, what do they do to deserve an explanation? To answer these questions, one has to firstly understand the fantasy of stockholders equity. When an individual goes to the market and buys stocks, he/she basically buys ownership A corporation is basically a public-owned enterprise. By declaring itself a corporation, the company or e nterprise is selling itself to the public. This is done by the company to essentially generate more money and finances. When it becomes a corporation, the company is actually giving the stockholders a ripe(p) or privilege to vote for the Board of Directors. The elected Board of Directors is then responsible to make decisions rough the company and see where andhow the company can maximize the profits. The stockholders then gain from the profits. The stockholders do not instantaneously earn the profit but are given dividends instead. These dividends are paid annually, every year omit when the company is going in loss to an extent that it even fails to pay back the liabilities it has borrowed. At such(prenominal) times, the liabilities are preferred and paid first and the remaining is given as dividends to the stockholders.To further understand the race between the company and the stockholders, Walt Disney Corporation will be used as a case for summary and descriptive explanation . But, before