Advantages And Disadvantages Of Ceo

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PART A Do you think finance departments are the best place to train future CEOs? Now in companies, the CEO position is getting replace by CFO post. The Chief Financial Officer now performs many important activities that mainly includes handling a controlling the cash flow, by taking into account the company’s liabilities and understanding it and in raising the capital which revolves around the company’s financial department. The main objective of any CFO is to look upon the profitability of the company. Now on the other hand, if we see upon the responsibilities and duties of CEO, he also has to take into consideration the main segments of the company like tax, finance, risk, policy making, human resource management and public relations. In simple words, the CEO has to move ahead his company in correct direction by handling all segments like a pilot of an airplane. Advantages  CFO is expert in his finance field, as he knows how to earn a good profit for the company and achieve the company’s goal.  As CFO is appointed, the CEO can execute and implement his views and ideas to increase the rate profitability easily. Disadvantages  Sometimes the CFO gets narrow minded in increasing the profit earning of the organisation. By avoiding this factor, he is only concentrating…show more content…
Individuals hold large part of shares. Shareholders expect that, on their behalf the corporate managers will earn a profit for them. Meanwhile, the personal interest of board of directors and shareholders clash among each other. This conflict between various posts is termed as Agency problem. Every owner tries to mitigate with agency problem because it directly affects the profitability of the organisation. There is one solution to deal with this agency problem is that the company can give an additional pay for the board of directors by taking some portion from the profit of company which it earns every year. As such, the members of the board will incline towards the interest of

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