Introduction
In a capitalistic market, the measure of success is the maximization of shareholder wealth and maximized profit. These goals are what drive the economy and effects more than just the corporation in and of itself. Regulatory issues are in place to protect competition and stimulate the economy. Without the regulations competition is stifled leading to a move away from a capitalistic market. The statement, "Since the goal of the public corporation is to maximize shareholder wealth, management should take any action necessary to achieve this goal so long as no law is violated"…
