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1. Salim opened ODragon 17 years ago and this store is located in Muscat, and sells gift items. Today, ODragon has 50 employees including Salim and Hamid, his son, who works part time in the store. The business has boomed in recent years, and they are looking for new ways to take advantage of his increasing business opportunities. Although Salim’s formal business training is limited, Hamid will soon graduate with a degree in finance. Salim has offered him the opportunity to join the business as a full-time partner. Hamid is interested, but he is also considering other career opportunities in finance. Right now, Hamid is leaning toward staying with the family business, partly because he thinks it faces a number of interesting challenges and opportunities. Hamid is particularly interested in further expanding the business and then taking it public. Salim likes his ideas, but he is also concerned that his plans might change the way in which he does business. In particular, Salim has a strong commitment to social activity, and he has always tried to strike a balance between work and family. He is worried that these goals will be compromised if the company incorporates and brings in outside shareholders. Hamid and Salim plan to take a long weekend off to sit down and think about all of these issues. (Answer to all the following questions collectively shall be 100 to 150 words) Using the above case answer the following: A. What are the functions of a financial manager? B. What agency relationships exist within a corporation? C. Is wealth maximizing the same thing as maximizing profit? Explain |
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