1.As an advanced management st

1.As an advanced management student with an emphasis on corporatefinance, you want to apply your acquired knowledge to improve yourpersonal credit history. Present at least three examples fromcorporate governance that would assist in this goal. Do not forgetto be an academic critic, that is, avoid personal opinions withouta theoretical basis.


Three examples from corporate governance that will help me in mygoal of improving my personal credit history are:

  • Accountability – This principle of corporate governance isbased on the corporate finance theory of risk management. I willensure to borrow only when required and once I start borrowing in areasonable manner and cut down on my unnecessary expenses andborrowings it will start reflecting positively on my personalcredit history and my credit score as well.
  • Stewardship – This principle of corporate governance is basedon financial theory of fiduciary responsibility. I have the ethicalobligation to act in a manner that will ensure financial stabilityfor me. Just like in a company managers are fiduciary responsiblefor investments made by stockholders I will be fiduciaryresponsible for my own money. Hence by better taking care of myassets and expenses I will be able to improve my credit history andscore as well.
  • Measurement – This aspect will focus on constant evaluation ofmy finances. By setting tangible and measurable financial goals formyself I will be better able to manage my earnings and balance itwith my expenses. Budgeting will be a good tool that I can usehere.

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