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Essay Archive - Increasing Shareholder Wealth
Increasing Shareholder Wealth
The goal of all corporations is to increase shareholder wealth.
Shareholder wealth is increased is by increasing the corporation's profit. In a
corporation involved in manufacturing, reducing the cost of the factors of
production is essential for growth.
One of the major components of production costs is labor. When in comes
to labor costs, the corporation and the worker usually have very different goals.
The corporation wants to pay the worker as little as possible, while
maintaining the productivity and quality required by its customers. The worker,
on the other hand, s....
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