A business's only responsibility is to maximise financial returns to Essay

A business's only responsibility is to maximise financial returns to its a shareholders - Essay Example nancial returns and profitability would mean to shareholders, the different factors that affect profitability and contribute to maximizing shareholder wealth, the examples and evidence of shareholders returns and company policies and strategies will be analyzed. This essay would highlight the fact that it is a business and company’s primary responsibility to increase profits and improve shareholder financial returns and wealth maximization to maintain the trust of shareholders and investors in the market although there are many factors and controversies involved as will be discussed. Profitability of a company is measured with the values of return on equity (ROE) and return on assets (ROA). Return on equity reveals the profits a company earns when compared with the total amount of shareholder equity. Shareholder equity represents assets created by retained earnings of business and the capital invested by the owners. Shareholder equity equals total liabilities subtracted from total assets and refers to what shareholders possess. High returns on equity indicates that the company can generate cash internally and higher returns on company’s equity suggests better position of the company. For example if a business had a net worth or shareholder’s equity of $200 million dollars and made a profit of $20 million dollars, the earnings from returns on equity would be 10% (see Omran et al, 2002). Higher returns are positive for the company and indicate valuable returns and profitability for shareholders as well. It is the responsibility of a company to see to it that shareholders get adequate and profitable financial returns for their investments (Robbins et al, 2003/2004). The formula for returns on equity is: Net Profit / Average Shareholder Equity for the Period. Asset turnover is an indication of total sales for $1 of assets and return on assets or ROA gives an indication of profits generated by a company for each $1 in assets. Profitability is measured both in

Amearican Pop Cultures and Politics from 1940 to Present ( short Essay

Amearican Pop Cultures and Politics from 1940 to Present ( short questions) - Essay Example During the formal political protest of 1950-1970, audiotopia music was used to make an awakening call to Americans to oppose bad governance and fight for more civil rights and liberty. 2. Formal politics are the kind of politics that is defined by the law. In this case, there exists a legal framework on which all political issues are inclined. Just as the title implies, they are formal, organized, and very easily defined and identified. Formal politics are done be organized groups and individuals and in most cases, they involves divergent opinions on some legal perspectives. On the other hand, cultural politics are informal. In this case, culture politics basically defines the role of culture in defining economic, social and political lives of the people. As such, it involves everyday acts of political changes and ideas that are not intentional or at least based on cultural aspects. During 1940-1950, politics in America were marked with huge changes as a result of amendments made on the law to regulate the way politics are conducted. In this case, the two types of politics were harmonized so as to complete each other. between 1960 and 1970, more formalization of p olitics was done such that a shift from cultural politics to modern politics were experienced. 3.A moral panic is the term used to express a strong feeling of fear among the population that the social and moral orientation of their culture is being threatened. In this case, moral panic in America during the period 1950 to 1990 was marked with changes in the moral aspect of people. As such, more and more people started engaging in immoral behavior that was seen as catastrophic to future generation. Moral decadence was experience mainly in 1980s and 1990s whereby the issue of sexual immorality was seen to be on the riding trend. Many cases of teenage pregnancy and indecency acts