Topic
Advanced Accounting Analysis
Instructions
1. a) Discuss the differences between the shareholder and stakeholder view. Which are the goals of the owners and of the main stakeholders of an organisation? (400 Words).
b) Define corporate governance and discuss how it might influence the management control in an organization.
800 Words, 8 References
2. a) According to Miles and Snow (1978) business level strategies fall into one of the following categories: prospector, defender, analyser, and reactor. Define them, and discuss their differences. (400 Words).
b) Define strategic management accounting (SMA) and give some examples of methods that are considered as SMA.
800 Words, 8 References
3. a) Explain the role of the controller in operating and maintaining the management control system in a decentralized organization.
b) Explain the agency theory, and discuss the critique against it.
800 Words, 8 References
Total words: 2400
Answer preview
Shareholders’ view contrasts stakeholders’ view. Shareholders are known as owners of a firm, and the primary purpose of existence of a company is to generate returns for a shareholders. The view of shareholders can be explained from the perspective of Milton Friedman on social responsibility (Saint and Tripathi, 2006). According to Friedman, shareholders serve as the key element of an organisation, and that a firm should only be socially responsible to shareholders. Based on this perspective, it follows that a firm strive to maximize profits for the sake of shareholders who consider it as a reward for return for the risk taken in investment.
Word count: 3065