tailieunhanh - business economics and managerial decision making - Trefor Jones

Written primarily for students taking?courses in managerial economics?in Britain and Europe,?The Business Economics and Managerial Decision Making analyses the growth and development of privately owned firms and also the decisions made by firms operating in both private and public sector enterprises. Coverage is clear and concise, and avoids specialist techniques such as linear programming | BUSINESS TeAM YYeP G y Digitally signed by TeAM YYepG DN cn TeAM YYePG c US o TeAM YYePG ou TeAM YYePG email yyepg@ Reason I attest to the accuracy and integrity of this document Date 19 31 36 08 00 ECONOMICS AND MANAGERIAL DECISION MAKING Trefor Jones Manchester School of Management UMIST JOHN WILEY Si SONS LTD 4 PART I CORPORATE GOVERNANCE AND BUSINESS OBJECTIVES INTRODUCTION Firms are major economic institutions in market economies. They come in all shapes and sizes but have the following common characteristics Owners. Managers. Objectives. A pool of resources labour physical capital financial capital and learned skills and competences to be allocated roles by managers. Administrative or organizational structures through which production is organized. Performance assessment by owners managers and other stakeholders. Whatever its size a firm is owned by someone or some group of individuals or organizations. These are termed shareholders and they are able to determine the objectives and activities of the firm. They also appoint the senior managers who will make day-to-day decisions. The owners bear the risks associated with operating the firm and have the right to receive the residual income or profits. Where ownership rights are dispersed control of the firm may not lie with the shareholders but with senior managers. This divorce between ownership and control and its implication for the operation and performance of the firm is at the centre of many of the issues dealt with in this book. OWNERSHIP STRUCTURES The dominant model of the firm in Western economies is the limited liability company owned by shareholders but the form varies significantly between countries. In some countries the control rights of the owners are limited by powers given to stakeholders who may share in the appointment and supervision of managers and in the determination of the enterprise s objectives. In Germany for example large companies recognize the role of workers and