What Actions Can Shareholders Take When the Corporation Is Underperforming

question 82

Essay

What actions can shareholders take when the corporation is underperforming and the board of directors is not aggressive in holding managers to task?

Comprehend Arrow's Impossibility Theorem and its significance in social choice theory.

Analyze the Median Voter Theorem and its application in predicting outcomes of elections and decision-making scenarios.

Understand the properties of a "perfect" voting system as proposed by Kenneth Arrow and identify voting systems that fail to meet these criteria.

Evaluate the consequences of the Condorcet Paradox in voting and social choice contexts.

---

Definitions:

Consideration

Something of value that is exchanged between parties in a contract, which is necessary for the agreement to be legally binding.

Performance

The action or process of carrying out or accomplishing an action, task, or function.

Oral Contract

An agreement made through spoken words rather than written, which can be legally binding under certain conditions.

Another's Debt

The obligation to repay money borrowed by another person or entity, often due to a legal or financial agreement.