Please respond at least 200 words per question.
The firm’s self-supporting growth
rate is influenced by the firm’s capital intensity ratio. The more
assets the firm requires to achieve a certain sales level, the lower its
sustainable growth rate will be. Many experts argue that it is better
for an organization to grow organically or by putting the money back
into the business and not taking on debt. Consider your own organization
that you currently work for or have worked for in the past. What is
their approach to growing the business? How would you advise your
company based on what you have learned this week in terms of
Managerial entrenchment occurs
when managers gain so much power that they can use the firm to further
their own interests rather than the interests of shareholders. The
shareholders are essential to the organization. For this discussion,
consider that you are the CEO of a large public-traded organization.
What steps would you take to ensure that your management team makes
decisions for the better of the stakeholders and not their own
interests? Provide specific steps based on your research of
organizations that have faced this issue in the past.