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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 629 |
Essay's paper body
Because of the lower ratios, Tyco may pose as a greater risk to shareholders' investment when compared with General Electric. Lower ratios typically mean greater risk to investors who are interested in investing in large corporations. Greater risk also has the possibility of meaning greater investment in the long run...
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Greater risk also has the possibility of meaning greater investment in the long run.
In conclusion, it would appear that General Electric would be the safer, less risky company to invest with. However, although Tyco poses as a greater risk, there may also be a greater investment in the long run for the investor...
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General points of the essay
Capital structure and shareholder's wealth
Distinguish between shareholder and stakeholder in a business context. Comment on the influence of shareholders on the management of a company and its allocation of rewards.
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