Companies Should Not Be Run in the Interest of Their Owners

Companies Should Not Be Run in the Interest of Their Owners

Assessment

Interactive Video

Business

University

Hard

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Quizizz Content

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The video discusses the impact of free trade and capital markets post-2008 crisis, focusing on the relationship between stock markets and corporate governance. It critiques the emphasis on shareholder value, highlighting the short-term focus of modern companies due to dispersed ownership and financial deregulation. The video also examines the challenges faced by other stakeholders and the trend of profit distribution through dividends and share buybacks, which limits long-term investment and productivity development.

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7 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What is the relationship between free capital mobility and the functioning of capital markets?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

Discuss the paradox of individual shareholders being the least committed to the long-term future of a company.

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3.

OPEN ENDED QUESTION

3 mins • 1 pt

What are the implications of financial deregulation on shareholder power?

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4.

OPEN ENDED QUESTION

3 mins • 1 pt

How does the concept of shareholder value maximization impact long-term investments in companies?

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5.

OPEN ENDED QUESTION

3 mins • 1 pt

Explain how the distribution of corporate profits has changed from the 1970s to today.

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6.

OPEN ENDED QUESTION

3 mins • 1 pt

What are the consequences of prioritizing short-term profits over long-term productivity development?

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7.

OPEN ENDED QUESTION

3 mins • 1 pt

How does the saying 'I'll be gone, you'll be gone' reflect the attitudes of modern investors?

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