Intro to Business Assignment 2 Coursework Example | Topics and Well Written Essays - 500 words

Intro to Business Assignment 2 - Coursework Example We realize that this shall ultimately benefit our valued customers and lead to a stronger reputation of our business in years to come. Your co operation in this regard shall be highly appreciated. Sincerely, Mr. ABC Topic B: In corporations, the interests of the stockholders are largely protected by the Board of Directors who are appointed by the former to take decisions in favor of them. The Board of Directors are paid handsome amount including stock options, compensation packages etc. and are appointed under fiduciary obligation that entices them to run the company in a way that benefits the stockholders. However, as far as the legal obligations are concerned, the penalty for not acting in the interests of shareholders varies because of difficulties for the Court in assessing the decision taken (Lawrence & Weber, 2010). The fact that shareholders vote for the Board of Directors makes the latter liable to perform in the interests of the former because if that doesn’t happen t hen the shareholders have the power to dismiss the directors. The concept is similar to that of voting under democracy.