Corporations Have Shareholders

question 22

Essay

Corporations have shareholders.Some have many shareholders, who each own a small share of the firm's equity capital.Others have a few shareholders or perhaps only one, owning large shares of the firm's equity capital.What are the consequences for management and shareholders, respectively, of being in either situation?

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Definitions:

Mental Replay

The act of mentally revisiting a past event or experience, which can affect an individual's current mood and thoughts.

Repress

To hold back or suppress emotions, desires, or thoughts from conscious awareness.

Anxiety-arousing Memories

Recollections of past events that are linked with feelings of anxiety and fear, often impacting an individual's current emotional state and behavior.

Sigmund Freud

An Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.