19 State any two possible conflicts between shareholders & government & give solutions to them. [6]

[Sir Afzal Shad]

Q19 State any two possible conflicts between shareholders & government & give solutions to them. [6]

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Possible Structure
[KN]
[AN]
[AN+]

[KN]
[AN]
[AN+]

[Syed Mustafa Ali]

[KN] Profit Maximization for shareholders Vs following rules and regulations
[AN] Shareholders want to make as much money as possible from their investment in a company. They believe that if the company maximizes its profits, it will benefit them through dividends, higher stock prices, and other financial gains.
[AN+] Governments may enact laws to protect consumers from deceptive practices and ensure the safety and quality of products. Such regulations can prevent companies from prioritizing short-term profits over the long-term well-being and satisfaction of their customers.

[KN] Environmental Practices vs Implement and enforce strict environmental regulations
[AN] Shareholders may push for cost-cutting measures, including lax environmental standards, to maximize short-term profits.
[AN+] The government can incentivize environmentally friendly practices through tax breaks or subsidies for companies adopting sustainable methods. This aligns shareholder interests with responsible environmental stewardship, balancing profit motives with broader societal concerns.

[Kumail Alvi]

[KN] Taxation Policies
[AN] Capital gains taxes and high corporate tax rates can lower investors' overall returns on investment, shareholders may not be happy with government taxation policies.
[AN+] To promote investment and economic expansion, the government may decide to enact tax breaks or incentives. Reducing corporate tax rates and providing tax benefits for long-term investments are two examples of how to do this. The government can lessen shareholder disputes and encourage economic growth by improving the tax code for investors.

[KN] Regulatory Framework
[AN] Government rules may be too onerous or constrictive for shareholders, especially in sectors like finance or healthcare. The profitability and operations of businesses may be restricted by these rules.
[AN+] In order to resolve this conflict, the government should regularly review its regulations to make sure they maintain a balance between advancing economic growth and safeguarding the public interest. The creation of more simplified and effective regulations that satisfy both business and regulatory goals can result from cooperative talks with industry stakeholders.

[Salman Khalid]

[KN]taxation and financial reports
[AN]shareholders seek to maximize returns on their investments However, governments have an interest in collecting taxes to fund public services and infrastructure
[SOL]Implement transparent and accurate financial reporting practices that comply with applicable tax laws and regulations.

[KN]regulatory compliance and corporate governance
[AN]Conflicts can occur when shareholders perceive regulatory compliance as burdensome or costly
[SOL]open communication between shareholders and government agencies

[Talha Asim]

[kn] taxes lower profits [an] government charges taxes that have to be paid and the shareholders who just want to reduce their costs are unable to do so [an+]this can be solved if the government uses other taxing methods like giving incentives like tax holidays or charging indirect taxes

[kn[ keep social costs low [an] such costs especially costs like pollution are what the government tries to reduce but arent even considered by the shareholders since they are just an add on to costs [an+] there should be regulations made to stop such acts

[Syed Raza]

[KN] Taxation and Regulation
[AN] Shareholders may seek to minimise taxes and reduce regulatory compliance costs, which could conflict with government's need for tax revenue and regulatory oversight.
[AN+] Shareholders and the government should work together to ensure compliance with tax and regulatory

[KN] Environmental Impact
[AN] Shareholders may prioritise profit over environmental concerns, while the government may enforce stricter environmental regulations.
[AN+] shareholders should consider long-term sustainability and invest in environmentally friendly practices and technologies

[Ibrahim Aamir]

[KN] taxation
[AN] government would not appreciate if the business does not pay taxes
[AN+] the solution is when they acts against tax invaders

[KN] polluting the natural resources
[AN] as the government trends to protect natural recourses and business especially in the secondary sector produces pollution
[AN+] so the government should take action to protect the natural resources

[Sir Afzal Shad]

Moderator Comment:

Improve the AN and AN+ for both points. There shall be a clear impact of both showcased.

[KN] Profit Maximization for shareholders Vs following rules and regulations
[AN] Companies should invest in regulatory compliance efforts to meet government requirements
[AN+] Engaging with government authorities to understand and influence regulations can help bridge the gap between profit maximization and regulatory compliance.

[KN] Taxation and financial Clarity
[AN] Companies should adopt responsible tax practices, which means fulfilling tax obligations by avoiding tax evasion or aggressive tax avoidance.
[AN+] Engaging in open dialogues with government tax authorities to ensure compliance and fair treatment is important.

[Maham fatima]

[KN]Expansion vs Govt objective of preventing creation of monopolies
[AN]Shareholders are likely to expand the business in order to maximize profits and earn higher dividends however this may lead to creation of a monopoly which is against the aims of govt
[AN]To solve this government can encourage new businesses eg through subsidies to maintain competition


[KN]Production methods and Govt objective of lowering unemployment
[AN]Shareholders may want to use more capital intensive methods to grow quickly however many workers may loose jobs this way
[AN]to solve this, government can train and update skills of workers so that employers get encouraged to employ them

[Hadia Zia]

[KN] Taxation Policies.
[AN] Shareholders may seek tax incentives or reductions but the govt may implement taxation policies to generate greater revenue.
[AN+] Thus govt and shareholders may agree on terms where tax policies is moderate, such that shareholders dont find a way out to avoid it.

[KN] Efficient production methods.
[AN] Shareholders might make some workers redundant with introduction of new technology while govt aims of lower unemployment and so due lack of mind matching conflicts may arise.
[AN+] Thus in order to resolve this issue govt may provide workers with quality education so that they learn maximum skills and abilities, hence forcing shareholders not to fire them.

[hafsa kashif]

[KN]Expansion vs Govt objective of preventing creation of monopolies
[AN]Shareholders are likely to expand the business in order to maximize profits and earn higher dividends however this may lead to creation of a monopoly which is against the aims of govt
[AN+]To solve this government can encourage new businesses
[KN]Production methods and Govt objective of lowering unemployment
[AN]Shareholders may want to use more capital-intensive methods to grow quickly however many workers may loose jobs this way
[AN+]to solve this, government can train and update skills of workers so that employers get encouraged to employ them