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Special Topics

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Analytical Corporate Finance

Part of the book series: Springer Texts in Business and Economics ((STBE))

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Abstract

The previous chapters showed how standard corporate management can be carried out through knowledge of corporate finance tools and issues and how to exert the standard functions of corporate management.

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References

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Authors and Affiliations

Authors

Problems

Problems

  1. 1.

    What are the main reasons for a merger?

  2. 2.

    What are the forms of speculative rationale?

  3. 3.

    Explain the role of diversification in the firm’s economy.

  4. 4.

    Describe how a hostile takeover takes place and explain the difference between positive and negative takeovers.

  5. 5.

    Describe the main types of poison pills as a tool to prevent takeovers.

  6. 6.

    The issues of concern to those who have worked to develop new explicit mechanisms for the external governance framework include the following:

    1. (a)

      Company probity

    2. (b)

      Executive honesty

    3. (c)

      High audit fees

    4. (d)

      Political influence

    5. (e)

      The politics of profit and executive compensation

  7. 7.

    Other issues that have not been addressed explicitly by corporate governance reformers but are viewed as important by society include the following:

    1. (a)

      Corporate performance

    2. (b)

      Social responsibility

    3. (c)

      Ethics

    4. (d)

      Environmental standards

    5. (e)

      Health and safety

  8. 8.

    Distinguish between internal and external corporate governance and explain how they relate.

  9. 9.

    Explain the interdependence between economic development and corporate governance.

  10. 10.

    Describe the foundation of the present system of corporate governance as it applies to limited liability companies and how it developed.

  11. 11.

    What are the forces that shape corporate governance reform efforts, and what triggers them?

  12. 12.

    When managing risk, you will only be expected to counter risks that your business may reasonably be expected to face while providing its services. However, risk management involves a process of steps to be taken in order. This order is:

    1. (a)

      Risk identification, risk analysis, risk treatment, risk monitoring, and review

    2. (b)

      Risk identification, risk treatment, risk analysis, risk monitoring, and review

    3. (c)

      Risk analysis, risk identification, risk treatment, risk monitoring, and review

    4. (d)

      Risk identification, risk analysis, risk monitoring and review, and risk treatment

  13. 13.

    What are the factors impacting business risk?

  14. 14.

    List and explain the various forms of response to risk.

  15. 15.

    Explain in what context it is better for a firm to externalize the risk management function.

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Corelli, A. (2023). Special Topics. In: Analytical Corporate Finance. Springer Texts in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-031-32319-5_14

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