Question

The management of JCB is divorce from ownership what dose this mean

Answer 1

Answer:

Explanation:

The owners of a company normally elect a Board of Directors to control the business's resources for them. Often in smaller firms, there is no difference between the Directors and the Shareholders - they are the same person or people.

However, when the share ownership of the business becomes more widespread (for example when shares are sold to external investors) the original owners of the business sacrifice some of their control.

Other shareholders can exercise their voting rights, and providers of loans often have some control (security) over the assets of the business.

This may lead to conflict between them as different shareholders can have varying objectives. This is known as the principal agent problem.

Answer 2

JCB was named after the initials of the name of its founder Joseph Cyril Bamford.

-- Founded in 1945, the company continues to be owned by the Bamford family.

-- JCB produces over 300 types of machines, including diggers (backhoes), excavators, tractors and diesel engines.

-- In India, the UK and Ireland, the word ‘JCB’ is often used as a generic description for mechanical diggers and excavators.

-- The word ‘JCB’ now also appears in the Oxford English Dictionary, though still as a trademark. It is defined as “a type of mechanical excavator with a shovel at the front and a digging arm at the rear”.

-- JCB dominates the Indian construction equipment market, with every three of four construction equipment sold in India being a JCB.

-- JCB India Ltd started domestic operations in 1979 and has five manufacturing capacities in three locations—Ballabhgarh in NCR, Pune and Jaipur.