Given the thought that maximization of shareholders wealth is the dominant goal of management, in light of today's global situations, consider the following: SWM (shareholder wealth maximum) In detail, (be specific) how does the SWM model treat Risk in todays corporate world? Define Risk as it applies to the SWM model (1) In detail, discuss Shareholders thoughts/attitudes toward unsystematic, or operational risk.

(2) Explain how Shareholders motivate management to achieve SWM objectives.

(3) Explain what avenues of recourse Shareholders have if management deviates too extensively from SWM objectives.

(4) Explain, in detail, how the discipline of the capital markets can effect change in the corporate objectives.