A small company, Stevens Textile Co. is expanding its operations and needs additional financing to support its expansion

[answerhappygod]

A small company, Stevens Textile Co. is expanding its operations
and needs additional financing to support its expansion projects.
The company is planning to change its business registration from a
limited liability company to a corporation. As a corporation it
will be listed on the stock exchange market and sell shares to the
public to raise capital from investors. The business will be
managed by professional executives who are not owners of the
corporation. Explain agency relationship and agency costs to the
owners of Stevens Textile Co. Suppose Stevens Textile company is
very successful and the founders’ cash out most of their stock and
turn the company over to an elected board of directors. Neither the
founders nor any other stockholders own a controlling interest
(this is the situation in most public companies). List six
potential managerial behaviors that can harm a firm’s value. What
is corporate governance? List five corporate governance provisions
that are internal to a firm and under its control. Stevens Textile
Co. might want to reduce the conflict of interest that may arise
between corporate executives and shareholders by electing board of
directors to oversee the activities of the corporate executives.
Identify five characteristics of the board of directors that
usually lead to effective corporate governance.