the expense of shareholders or select corporate goals not in the interest of owners. emergency meeting of the board of directors of the company to take a second look at the possible goals of the corporation. and increase profitability. political parties for glory and favors. Corporate governance studies have, therefore, received global attention to ensure management accountability and to reduce or eliminate the principal-agent problem. Please answer the following concept questions: 1. Who are the owners of corporations? (Choose one: shareholders, CEO, board of directors, management, or federal government). 2. Identify the goal of financial management that the board should consider at the meeting. Explain with two reasons why that goal you stated is important for the corporation. 3. Does the goal of financial management differ for financial management in China or any foreign country? Why or why not? 5. All things being equal, which one of these three companies is likely to create value for its shareholders and why: 6. Explain agency theory and describe three agency problems facing Compack Corporations. 7. Do you think agency problems are likely to be severe or less severe in partnerships and sole proprietorships than in corporations? Why or why not? begins to fight off this hostile bid. Is management acting in the best interest of shareholders? Why or why not? 9. Identify four corporate governance mechanisms that can be used to reduce the agency problems in corporations