Corporate finance

Introduction

Tomkins Plc was incorporated in 1925 . The company engages in manufacturing and engineering activities on a global scale Operationally , the company is split into two distinct strategic business units . The Industrial Automotive business segment is involved in the manufacture of a wide array of systems and components for car , truck and industrial equipment . This business unit is further defined under the following broad categories

Power Transmission

Fluid Power

Fluid Systems

Other Industrial Automotive

The other strategic business unit is the Building Products segment which manufactures components

for heating , air conditioning and ventilation , and other building related products . This business unit too is broadly defined into two broad categories

Air Systems

Other Building Products

As at August 2008 , Tomkins Plc (2008 ,

.2 ) boasted 138-production facilities worldwide with 33 ,452 employees . The company is styled as a holding company with 54 companies under its portfolio

How Is Wealth For Shareholders Created Measured

BPP (2008 ,

.45 ) states Ordinary shareholders , by virtue of them having a residual interest in the business , are the true owners of the company These owners of the company then appoint management to act as stewards for their investments . By virtue of this appointment as stewards , the management becomes the agents of the shareholders (who are the principal ) and an agency relationship comes in force with the agents (management ) owing a fiduciary duty to the principal (shareholders Hence , it is from here that financial management theory derives the basic idea that the supreme aim of management is...