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Case study-6

Case study-6

Q Instructions The Week 6 Case Study Assignment asks that you consider the agency relationship between a corporate financial manager and the shareholders of the corporation. As a corporate financial manager, you have the opportunity to manage the company's cash on behalf of its owners (shareholders). Consider the case of Apple, Inc, and the company's cash stockpile. The company's financial managers bear the responsibility of managing the cash reserves on behalf of Apple's shareholders. Write a 1-2 page paper, using the following guidelines: In the first half of the paper, research and briefly describe the concept of agency. In the second half of your paper, imagine yourself in the role of Apple's financial management team. Describe what types of measures you would take to ensure that any decisions made with regards to the company's cash faithfully represent the wishes of the shareholders.

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An agency is a relationship between one individual or group of individuals with another individual or group. In this relationship, one performs a task on behalf of another; for example, an advertising agency advertises another company's product and charge for its work or project (Laurie, 2019). Shareholders or stockholders own a piece of a company or a portion of it. Shareholders in big corporations are people and institutions that merely invest money for future dividends and the possible increased value of their shares, but in small businesses, shareholders maybe the people who founded the company or have a more significant personal investment in it.