One of the commonly abused value maximization mode involves corporate valuation. Companies are evaluated by investors/shareholders based on financial stability, capital strength, profitability and asset utilization. However, to cite a case of a local mobile phone operator - Piltel, management failed to warn the investment public of its worsening account receivables. The rosy profit forecasts and surging business growth was purposively maintained to lure more investors to accept or buy the business at a premium valuation. The company's relatively lenient credit policy and sales system eventually made receivables difficult and impossible for recovery and collection. The company suffered severe capital inadequacy and has issued a debt moratorium. The company's share price fell considerab

Some common words found in the essay are:
, Holdings Inc, Resource Center, shareholder value, corporate governance, shareholder wealth, value maximization, key role, maximum shareholder, financial management,
Approximate Word count = 534
Approximate Pages = 2 (250 words per page double spaced)