Ligning Stockholder and Management Interests Part II

DIRECTIONS: Discussion 1: Aligning Stockholder and Management Interests

Respond by Day 5 to two or more of your colleagues in one or more of the following ways:

Comment on the motivational tools presented by your colleague, providing your insights based on your experience or research.

Suggest additional motivational tools that stockholders might use to balance interests.

Ask a probing question of your colleague, based on your readings from the week and/or your experience. You should be sure to include the context for your question and why it is important to address.

Compare your colleagues motivational tools with the ones you presented, and share any insights gained.

Develop your responses based on your own experience, the resources for the week, and additional research.


Brigham, E., & Houston, J. (2013). Fundamentals of financial management (13th ed.). Mason, OH: Cengage Learning.

a ¦Chapter 1, An Overview of Financial Management(pp. 2a 24)
In this chapter, the authors provide an overview of what financial management is all about and how it is related to the overall business.

Wise, S. (2013). The impact of financial literacy on new venture survival. International Journal of Business & Management, 8(23), 30a 39.
Retrieved from the Walden Library databases.

This article is an investigation into the impact of financial literacy on new venture survival. A model is proposed in which increased adoption of financial tools (e.g., financial statements and financial ratios) leads to increased frequency of financial statement generation, which, in turn, increases the likelihood of loan repayment and decreases the probability of venture failure.