Securities And Exchange Commission Swot Analysis

989 Words4 Pages

1. What is the "SEC"? SEC stands for Securities and Exchange Commission. The organization that regulates accounting practices is known as SEC. The Securities and Exchange Commission is a government commission formed by the Congress, responsible for overseeing the securities market and protecting people or investors against manipulative and deceitful exercises in the securities markets. 2. What is the goal of the Corporation and cite an advantage/disadvantage assoicated with the stated goal. The main goal of the Corporation is to maximize the wealth of the stockholders. The advantage associated with the stated goal is that the customers can buy a vast range of goods and service at economical price The disadvantage associated with the stated goal is that the corporations might apt to misuse the workers or consumer, environment. …show more content…

What is the 'agency' issue associated with corporations and cite 3 factors which enhance shareholder control over management. The agency issue associated with corporations is the contention between the company's stockholders and the company's management. 3 factors which enhance shareholder control over management are: • Shareholders control over the management is enabled by the Sarbanes Oxley Act. • The shareholders are presently more forceful in ensuring that the management performs on their interest. • The shareholders have the authority to employ and remove the management. 4. Why are 'profits alone' an insufficient corporate objective? The objective of the corporate is not just to maximize the profits alone because of riskiness and the timing of the cash

Open Document