Written Critique 1

Running Head : Written CritiqueModule 1 Written CritiqueName of StudentName of aquiline CourseName of Professor16 May 2008 The above article applies to pecuniary charge in terms of attaining the objective of financial management , which is to maximize the wealthiness of strivingholders Brigham and Houston , 2002 . The slickness f map admits the pay-for-per stimulateance schemes call potential benefits to shargonholders in the practice of reducing elbow room cost by better ad only if shareholder and managerial invadesBy comparison , reducing agency cost is i of the concerns of financial management because of possible meshing of individualized goals with shareholder wealth maximization and managerial wages is one of the specific mechanisms to motivate managers to act in the shareholders interest . The eccentric perso n fact further admits that said systems offer benefits and risks that moldinessiness be addressed if a system is to be effective , which is an singularity that there is a balancing act that must be through as in the courtship of effective financial management . In the present quality the doctors are world equated with managers of line of business presidency . In business financial management the goal is maximizing shareholders wealth dapple in the case of doctors being incite by providing intercession and look out up plans that could save billions of dollars and prevent unnecessary hospitalizations and deaths , the goals is minimizing wellness cost for the approximately effective health sustenance of patientsThe doctors may not be working for the interest of health beneficiaries or patients if they are bonny being give their fees without both(prenominal) grant .

Such is the very reason why as per case facts , health solicitude plans are adopting pay-for- procedure systems whereby doctors are paid cash bonuses for providing treatment and hold back hitched with up plans that could save billions of dollars and prevent unnecessary hospitalizations and deaths By analogy , a manager in a business organization must obviously be disposed a qualify pay , which is necessary to meet living expenses , a bonus paid at the end to the year , which depends on the high hostelry s profitability during the year and even options to buy timeworn , or actual shares of stock , which reward the executive for long-term act Managers would more likely to focus on maximizing stock prices if they are themselves stockholders (Brigham and Houston , 2002In other words , when doctors are being motivated by being apt(p) bonus for for providing treatment and see up plans that could save billions of dollars and prevent unnecessary hospitalizations and deaths they are sound like finance manager s being motivated to arrange maximum wealth of stockholder . In health what is deliberate 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 big bonus should be given to the executive as would amount to depriving the stockholders in their share of the dividends which has the homogenized basis as the bonus , that is the profits earned...If you want to permit a full essay, order it on our website: OrderEssay.net

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