Rotor and Tailplane

Principal ‐shareholders  /  owners Agent ‐management  /  directors  and  officers Principals  and  agents  may  have  conflicts  of  interest,  agents  may  take  actions  that  benefit their  personal  goals  at  the  expense  of  the  owners.  Such  situations  can  arise  when : Agents  make  short  term  decisions  that  may  benefit  themselves  when  long  term  decisions  may  have  provided  greater  shareholder  wealth.    Management  reward  systems  should  bare  this  in  mind. Agents  may  empire  build  in  order  to  satisfy  their  own needs  and  ego  rather  than  for  the  good  of  the  shareholders Decisions  may  be  taken  that  protect  managerial  positions  and  perks  rather  than  for  the  benefit  of  shareholders.,  eg.  Costly  acquisitions  etc.

Currently revising for the above ACT certificate. Why I am taking this is for another post (actually to be updated in this post, at a later stage); this post is just to notify any readers that the next series of blogs will be some notes for this exam.  The contents are attributable to the ACT and FME Training, they have been edited and put together by myself (any errors are more likely to be mine). Hopefully others may find them of use for there own studies. The posts generally focus on the written elements of the examination, the calculation elements of the exam are best tackled in full through your ACT and FME Training notes directly.   Of course the notes that will or may be published are only notes and are not all encompassing.  So reader beware, your own hard work and study cannot be substituted.

Manage finance decisions - raising of long term and short term capital. Manage investment decisions - selecting investments and making capital spending decisions. Financial control and management - managing costs and shareholder value through acquisitions, divestments and capital structure. Managing risk in day to day operations. Managing short term financing decisions through working capital management. Managing dividend policy.