Discussion Activity for Accounting

Q1. Explain the "shareholder primacy" thinking in Lynn Stout (2012) about?

Q2. Explain the key arguments in Section 2 of Stout (2012), "The Positive Case Against Shareholder Primacy".

Q3. In Section 3 of Stout (2012), "The Theoretical Case Against Shareholder Primacy", five theories are presented. Explain these five theories. How do these theories influence your thinking about maximizing shareholders wealth?

Read and follow instruction below:

1. Visit Manufacturing Engineering's website at www.mfgeng.com.

2. On its website, Manufacturing Engineering lists several categories of projects. Choose a category from the list that interests you.

Now answer the following questions. Please write the question provided below and provide your answer below each (a, b, and c).

a. What part of the value chain is targeted by the category?

b. What benefits can be identified from the category?

c. Do you believe target costing, activity-based management, cost of quality management, or just-in-time inventory was useful in the category you looked at? Why?

Text Book: Accounting, Economics, and Law- A Convivium: New Thinking on "Shareholder Primacy" by Lynn A. Stout.