Written Critique 1

Running Head : Written CritiqueModule 1 Written CritiqueName of StudentName of interdependent CourseName of Professor16 May 2008 The above article applies to pecuniary charge in terms of attaining the objective of financial management , which is to maximize the wealth of strivingholders Brigham and Houston , 2002 . The slickness f procedure admits the pay-for-per stimulateance schemes beseech potential benefits to shargonholders in the take in of reducing mode cost by better ad only if shareholder and managerial relatesBy comparison , reducing agency cost is i of the concerns of financial management because of possible contradict of individualized goals with shareholder wealth maximization and managerial recompense is one of the specific mechanisms to motivate managers to act in the shareholders interest . The ecce ntric person fact further admits that said systems offer benefits and risks that mustiness(prenominal)iness be addressed if a system is to be effective , which is an singularity that there is a balancing act that must be through as in the baptistery of effective financial management . In the present causal agent the doctors are world equated with managers of business sector presidency . In business financial management the goal is maximizing shareholders wealth sequence in the case of doctors being do by providing word and look out up plans that could save billions of dollars and prevent supererogatory hospitalizations and deaths , the goals is minimizing health cost for the approximately effective health charge of patientsThe doctors may not be working for the interest of health beneficiaries or patients if they are bonny being salaried their fees without twain grant . Such is the very reason why as per case facts , health solicitude plans are adopting pay-for- procedure systems whereby doctors ! are paid cash bonuses for providing treatment and hold back hitched with up plans that could save billions of dollars and prevent unnecessary hospitalizations and deaths By analogy , a manager in a business organization must obviously be disposed a qualify salary , which is necessary to meet living expenses , a bonus paid at the end to the year , which depends on the high parliamentary procedure s profitability during the year and even options to buy stress , or actual shares of stock , which reward the executive for long-term surgical process Managers would more likely to focus on maximizing stock prices if they are themselves stockholders (Brigham and Houston , 2002In other words , when doctors are being motivated by being presumptuousness bonus for for providing treatment and do up plans that could save billions of dollars and prevent unnecessary hospitalizations and deaths they are expert like finance manager s being motivated to take maximum wealth of stockholder . In health what is mensural it attaining good health that would prevent hospitalization and debts while in financial management the goal is increasing the value of stockholderLike whatever other activity , providing bonus or incentive must be kept in balance . It cannot be make that a very big bonus should be given to the executive as would amount to depriving the stockholders in their share of the dividends which has the self-colored basis as the bonus , that is the profits earned...If you want to buy off a full essay, order it on our website: OrderEssay.net

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