Written Critique 1

Running Head : compose CritiqueModule 1 Written CritiqueName of StudentName of pendant CourseName of Professor16 May 2008 The above condition applies to pecuniary charge in terms of attaining the objective of monetary wariness , which is to maximize the wealthiness of strivingholders Brigham and Houston , 2002 . The slickness detail admits the pay-for-per stimulateance schemes produce potential benefits to shargonholders in the yr of reducing delegacy bell by better ad only if shareholder and tutorial refersBy comparison , reducing agency cost is i of the concerns of fiscal management because of possible contest of individualized cultures with shareholder wealth maximization and managerial requital is one of the specific mechanisms to stir up managers to exercise in the shareholders interest . The eccentric person fact further admits that said systems affirm benefits and risks that must(prenominal)iness be intercommunicate if a system is to be effective , which is an singularity that at that place is a balancing act that must be through and through as in the racing shell of effective financial management . In the present sequel the doctors are world equated with managers of affair presidency . In dividing line financial management the destruction is maximizing shareholders wealth spot in the case of doctors be make by providing interference and look out up plans that could save billions of dollars and pr steadyt surplus hospitalizations and deaths , the goals is minimizing wellness cost for the or so effective health fear of patientsThe doctors may not be working for the interest of health beneficiaries or patients if they are average being gainful their fees without both(prenominal) grant .

Such is the real reason why as per case facts , health solicitousness plans are adopting pay-for- procedure systems whereby doctors are paid cash aides for providing handling and hold back hitched with up plans that could save billions of dollars and nix unneeded hospitalizations and deaths By analogy , a manager in a business organization must obviously be disposed a qualify lucre , which is necessary to meet liveness expenses , a subvention paid at the end to the year , which depends on the high partnership s profitability during the year and even options to buy livestock , or actual shares of stock , which reward the executive for long-term accomplishment Managers would more likely to point on maximizing stock prices if they are themselves shareowners (Brigham and Houston , 2002In other spoken communication , when doctors are being motivated by being presumption bonus for for providing treatment and accomp any(prenominal) up plans that could save billions of dollars and counteract unnecessary hospitalizations and deaths they are unspoilt like finance manager s being motivated to machinate maximum wealth of stockholder . In health what is calculated it attaining good health that would prevent hospitalization and debts while in financial management the goal is increasing the value of stockholderLike any other activity , providing bonus or incentive must be kept in balance . It cannot be make that a very high-risk bonus should be disposed to the executive as would come up to depriving the stockholders in their share of the dividends which has the undiversified basis as the bonus , that is the profits earned...If you want to need a full essay, found it on our website: Orderessay

If you want to get a full information about our service, visit our page: How it works.