A. What is the primary goal of investor-owned corporations?

B. What is the primary goal of most not-for-profit healthcare corporations?

C. Are substantial differences found between the financial goals of investor-owned and not-for-profit corporations? Explain your answer.

D. What is an agency problem?

a.) The Prime intention of investor owned corporations is to obtain the return on their investments. For an investor-owned business the financial goal is to maximize the profits and minimize the expense that maximizing the profit.

b.) Fundamental aim of most non-profit health care organizations is to improve the health care activities and spend all their profits on such movements. Their goal is not to make business.

c.) Yes there are substantial variations among the aims of investor-owned and non-profit organizations. For an investor-owned corporation the business goal is to increase the profits and reduce the expense that increases the profit. But the financial objectives of non-profit organizations is to spend more on its non-profit purpose.

d.) The agency problem is a dispute of interest natural in any relationship where one party is supposed to represent in another's best interests. In collabrative finance, the agency problem normally relates to a conflict of interest between a company's directors and the company's investors.