650 questions 1 and 2 Assignment Example | Topics and Well Written Essays - 500 words

650 questions 1 and 2 - Assignment ExampleSo no, avoiding unethical or ineligible behavior had better not be in engagement with the close of the firm unless its executives wish to amaze themselves facing prosecution. Yet Lockheed found itself in hot water many years with the US governance for giving bribes to foreign officials, even though it was accepted practice in the host countries.The very temper of a corporation develops an agency relationship between the stockholders and management. An article in the Yale Law School depository shows the problem develops when the upper managements ideas of running the company begins to conflict with the wants of its real owners, the shareholders, whose main goal is making money. It specifically mentions such things as country club membership and private use of the integrated jet. Unless those perks are contracted and part of the executives bonuses, such personal joys would be illegal and a definite conflict of interest (Macey).East Coas t Yachts has a very complicated cash flow. If it costs $435 million to stand $617 million in sales of its boats, that would mean each quarter the company would need in overindulgence of $100 million just to continue its manufacturing process. How they have been managing thus far and still continue to pay back almost $18 million in dividends in 2008 is amazing. All it would take is one market descent for the company to be headed for financial trouble. However it is true that the average luxury sea craft vendee has little concern for economic downturns, as the sales figures for super yachts have shown to have grown astronomically during one of the worst periods of recession since the Great Depression (Boat).It seems that East Coast has grown considerably, in that assets increase $40 million between 2009 and 2010. With a net $17.8 million growth in debt in the authoritative year, the company raised much needed capital. Ms Warren has admitted that poor planning has led to a volati le situation.