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What is the primary goal of a corporation

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Question :

Sam operates a very successful business in Hong Kong. Over the years, he has established a couple of retail shops in Hong Kong. He wants to expand his business in China. Although he is financially healthy, he feels his current financial resources may not be adequate for the expansion. He would like to explore alternative business organization forms and has asked you to address the following list of questions:

(a) What are the three alternative forms of business organizations ?

(b) What are the main advantages and disadvantages of each form of organizations?

(c) What is the primary goal of a corporation?

(d) What are an agency relationship and the agency problem?

(e) Describe THREE mechanisms that can reduce the agency problem?

Reference no: EM132385566

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