Suppose you own stock at AC Milan Berhad. The current price per share is RM30. Another company has just announced that it wants to buy your company and will pay RM40 per share to acquire all the outstanding stock. Your companys management immediately begins fighting off this hostile bid. Is management acting in the shareholdersbest interest? Elaborate on your opinion on this matter.

(5 marks)

Profitability based on short-term goals could be at the expense of long term sustainability of an organization, discuss.

(10 marks)

Critically evaluate main reasons that an agency relationship exists in the corporate form of organization.

(5 marks)