Final answer:
Shareholders choose company managers via a vote for board members; banks are financial intermediaries between savers and borrowers. For expansion, a business owner may raise funds through borrowing or issuing stock based on cost, control, and risk. Market forces can incentivize businesses to act less discriminatorily for practical and legal reasons.
Step-by-step explanation:
Shareholders typically choose company managers through a vote, typically at an annual general meeting (AGM) where candidates for the board of directors are confirmed. Management is often selected by the board, who are deemed to act in the best interests of the shareholders.
Banks are referred to as financial intermediaries because they intermediate between savers, who deposit funds, and borrowers, who take loans. This is crucial for the movement of money within the economy, thereby facilitating economic growth.
When considering a major expansion, the choice to raise funds through borrowing or issuing stock involves weighing control, cost, and risk. Borrowing maintains control but comes with fixed obligations, while issuing stock dilutes ownership but does not require repayment, spreading risk among investors.
Incentives play a significant role in decision making. If raising funds through borrowing became cheaper due to lower interest rates or if there were tax incentives for borrowing, a business owner might be more inclined to borrow, whereas support for equity markets might encourage issuing stock.
Market Forces and Non-Discriminatory Behavior
a. The flower delivery business may become incentive-ized to be less discriminatory as it could lose a substantial customer base and suffer reputational damage, affecting profits if it doesn't meet the needs of its diverse customer base.
b. An assembly line may start hiring qualified women due to the practical necessity of filling roles, ensuring uninterrupted production, and potentially benefiting from diversity.
c. The home health care firm may face legal repercussions for wage discrimination, and market forces could lead to staff shortages and lower service quality, incentivizing fair wages for all employees to maintain competitiveness and compliance with equal pay regulations.