S.P. Good corporate governance also reduces waste, corruption, risk and maladministration. Now, please check your inbox and confirm your email address. Ethical principles, such as honesty, keeping firmly to ones word, and the sanctity of human beings, constrain individual behavior in situations ill-suited for the states heavy hand. The ownership percentage depends on the number of shares they hold against the company's total shares.read more in shareholder primacy has been debated a lot. to estimate the cost of equity, and introduced the asset beta formula. The percentage of managers choosing the first option varied from lows of 8% (Japan) and 11% (Singapore) to highs of 34% (Canada), 35% (Australia) and 40% (the United States). Perhaps, criticism of shareholder wealth maximization arises because of a distaste for the concept as a normative proposition despite the fact that the proposition predicts firm behavior. The minimum number of shareholders in a company is one, while there is no upward cap on the maximum number. Bowie and R.E. This conduct is debatable and has been criticized on many platforms. Advantages of Remaining a Shareholder Post-Transaction. Friedman recognized that in some cases shareholders may have different objectives, but he concluded these objectives are better pursued by the shareholders on their own. As Milton Friedman wrote, There is one and only one social responsibility of business to use its resources and engage in activities designed to increase its profits so long as it … engages in open and free competition, without deception or fraud.2. Stakeholder theory is a good combination of economy and ethics. 7. Advantages Of Shareholder Primacy. The Advantages of Shareholder Value Analysis are performed as follows: It provides a long term financial view on which to base strategic decisions It provides a universal approach that is not subject to the particular accounting policies that are adopted. Tag along rights: As with drag along rights, tag along rights can be imputed into a shareholders agreement so that when the majority shareholders are selling their shares, any shares held by a minority shareholder must be bought also. These little pieces are shares and the person who owns them is known as a shareholder. In 1975, it helped defeat anti-trust legislation. Shareholders take the maximum risk, so they should get the maximum wealth creation. With no political views or editorial agenda, our goal is to create the number one based source of business news in Wales, creating a level playing field for every business no matter of its size. I am indebted to Bob Hebert for his research assistance and to Ram Baliga, Jim Flynn, John Hasnas and Gary Shoesmith for enlightening conversations. Hart and Zingales argue that this conclusion holds only under the assumption that shareholders can individually reproduce or undo any corporate decision, without incurring any additional cost. Note, however, that Post, Preston and Sachs, who take a more instrumental than normative view of stakeholder theory, embrace a wider enumeration of stakeholders, including regulatory authorities, governments and unions. Their response also appeared on ProMarket. Non-compete clauses: A shareholders agreement allows the shareholders to formally exclude any shareholders from creating companies which directly compete with the company while they are a shareholder. That does not mean stakeholder theory is perfect. Likewise, we recognize the necessity of a moral code and law to set bounds on permissible wealth-increasing actions. Here, Ellsworth argues for the primacy of customers interests over those of other stakeholders. Increased minority shareholder protection. As you can see, a stakeholder has a minimal impact on the corporation they serve, even though they will be directly impacted by any pitfalls of the corporation. While the definition of a stakeholder varies, there are five main types. activism, foreign competition, government. 5) Unlimited potential. A company's objective is a key issue in matters relating to corporate governance. To save content items to your account, 07.12.2021, myPOS named a top performer by BFAs Annual Fintech Report 2021, Tips This kind of governance focuses on maximizing shareholders wealth as they consider shareholders to be the companys owners. This is where stakeholder theory comes in. advantages and disadvantages of lifting the corporate veil. The complete paper is available for download here. Post, L.E. ), Find out more about saving to your Kindle, Book: Capitalism, Corporations and the Social Contract, Chapter DOI: https://doi.org/10.1017/CBO9781139058926.007. They are considered to be a subset of stakeholders, which are all . For example, a non-shareholder would not have the right to set derivative actions against directors who have breached their duties. But it does not hold for most other social objectives: an individual cannot generally undo corporate pollution at the same cost that a company would have paid to avoid it. Thus, separating the owner of wealth from the wealth managers does not alter the conclusion that judicious use of societys resources requires wealth owners to seek higher value projects. If consumers and owners of private companies take social factors into account and internalize externalities in their own behavior, why would they not want the public companies they invest in to do the same? Hart and Zingales ask. 6. Directors are considered mediators. You will Learn Basics of Accounting in Just 1 Hour, Guaranteed! 9. / Stakeholders are often individuals that a company hopes to attract who have displayed an ability to successfully manage other businesses or have developed important relationships. This narrow focus makes a companys goals simpler and easier to achieve. From a moral and ethical standpoint, the attitude taken towards stakeholders is not fair. Find out more about saving to your Kindle. In the book, for the first time, the idea of shareholders are the corporations true owner was introduced.. Typically, the law does not give a voice to stakeholders that are non-shareholders in a corporation. 28. Here we discuss criticism, background, and is shareholder primacy legally mandated, along with advantages and disadvantages. If you require further information, our corporate team would be more than happy to assist you. Chicago Booth Review While these may seem stable for the company in the short-term, long-term development and profitability are questionable as managers continue to shirk their responsibilities in entrepreneurial activities (Jones and Butler, 1992)., Friedman builds a case that (1) a business does not have responsibilities, businessmen do and they are acting as an agent of the principle (the company) and should therefore be serving the interests of the stockholder (Friedman 1970). series introduced the CAPM and its components, showed how the model could be used. Also see Cassidy for a thorough and accessible treatment of the factors driving the shift to a shareholder value perspective. 4. 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Advantages: - Leads to Agentic state where people obey more when the orders are given with more authority. Whats more, whats the difference in the similar-sounding word stakeholder? Governance allows the maximum wealth creation of shareholders. The advantages and disadvantages of stakeholder theory abound. These include customers, employees, local community, shareholders, and suppliers. This type of communication is also more prone to misinterpretations. By extension, they can also be seen as normative theories of business ethics, since executives and managers of a corporation should make decisions according to the right theory. Important stakeholders could be consumers, the environment, creditors, etc. First, its goal of maximisation of equity is measureable and thus, managers can set concrete steps to achieve it. This article is the final one in a series of three, and. Four explicitly mention shareholder value maximization as an objective. Evan and R.E. 05 June 2013. Rational strategy is often employed by large companies because their missions and goals tend, The relative disadvantages outweigh the advantages of having the firms CEO also serve as the firms Chairperson. So shareholders will not be benefited in that year. That is, we face a disagreement about values masquerading as a disagreement about facts. Examples of legal constraints include laws against bribery, child labor, and forced labor. The debate between a shareholder approach and a stakeholder approach has been going on for a long time. However, what constitutes the best interest is a matter of debate. While many might agree this principle governs managerial behavior, it continues to arouse intense scrutiny, adoration, and condemnation. Yet, if the owner of a privately held firm is under no obligation to care about anybodys interest but her own, why should it be different for a publicly traded company? Since the global financial crisis in 2008, the doctrine of shareholder primacy has been under intense scrutiny. This is to prevent deadlock on a disposal as most purchasers wish to obtain 100% of the share capital in a company. The advantages and disadvantages of stakeholder theory abound. To save this book to your Kindle, first ensure coreplatform@cambridge.org Friedman's position has been attacked . Disadvantages of corporate governance 1. The main advantages of stakeholder theory are that the theory is not only a single model to resolve the problem of identifying the proper objective of corporations, but also considers economic and ethics issues that make companies take social responsibilities and to present fairness to everyone involved in business. 2. Privacy & Cookies Notice With multiple disciplines under one roof, we work as one team to provide end-to-end support including corporate finance, legal, tax and communications services. 27 Wind Turbines set for Renewable Development in Denbighshire, New Homes at Llandudno Junction Development in High Demand. We explain shareholder wealth maximization is an efficient means to maximize societal wealth. This prevents minority shareholders becoming trapped in a company which is controlled by shareholders that they had no control over entering the company. None mentions shareholder welfare maximization. Preston and S. Sachs, Managing the Extended Enterprise: The New Stakeholder View, California Management Review 45, no. J.E. This is the case even if you dont run a company. Moreover, we are tempted to give our needs the patina of morality to forestall consideration of trade-offs necessary to meet them. The governance also focuses on charging the maximum competitive price to customers, increasing shareholders wealth. When both roles are held by one person in a company, the structure may encourage unified leadership and management due to dynamic perspective. This post is based on a recent paper authored by Professor Kothari; Richard Frankel,Beverly & James Hance Professor of Accounting at Washington University in Saint Louis Olin Business School; and Luo Zuo, Associate Professor of Accounting at Cornell University SC Johnson College of Business. This website uses cookies to ensure the best user experience. This has been a guide to what is Shareholder Primacy and its definition. Alternatively, please submit a quote through our website at https://www.greenawayscott.com/get-a-quote. The ownership percentage depends on the number of shares they hold against the company's total shares. When discussing the murder of Moe Green with Michael Corleone, he says, This is the business weve chosen. Although this modality is convenient, if used excessively it can lead to little to no peer-to-peer interaction., In Joseph Heaths paper Business Ethics without Stakeholders, he exposes that the fiduciary relationship between managers and shareholders seems like concepts with explicit moral overtones which might derive from the thoughts on serving as a natural point of departure for the development of a theory of business ethics (p.108). Still, competing objectives espoused by shareholders and members of society, in our opinion, become the purview of politics. Such a non-compete provision will often continue in force for a certain time after the individual ceases to be a shareholder of the company. An activist shareholder is an investor who uses their right as a shareholder to bring a change in the company. / One of the primary issues in the shareholder primacy debate revolves around the idea of who actually owns these corporations and whether corporations are capable of actually being owned. The generally accepted view is that corporations are owned by their shareholders, who ultimately have the ability to control the company. The University of Chicago Booth School of Business. The reliable performance trusted by thousands of merchants. Increase dividends or actions that improve the company's financial condition in the immediate future. Both the stakeholder model and shareholder primacy provide views into the important question as to whose interests businesses should act in. In this respect, Friedman was wrong. For example, incentive problems exist in non-profits and government. Note that I am considering only the normative version of the theory, which states how managers ought to behave. They purchase this share with their own funds. Support of the Business Context by Design. We use these cookies to make our offers and ads more relevant to your interests and to improve our websites user experience. Find out more about saving content to Google Drive. 3 (fall 2000): 373390. 1) You can lower your tax bill. Shareholder primacy does not consider stakeholders' interests to be the responsibility of directors. Corporate decisions and strategy may transition into reaching short-term goals, which may result in hasty decision-making and decisions characterized by short-term incentives and bonuses to meet certain targets. Freeman, A Stakeholder Theory of the Modern Corporation: Kantian Capitalism, in Ethical Theory and Business, 3rd ed., eds. In doing so, the wealth owner must add the cost of the project managers effort and expertise to the calculation. Find out more about the Kindle Personal Document Service. At the GS Verde Group, we help businesses in corporate transactions such as acquisitions, investment and succession planning. 13. Technology can also create a negative employee experience, which can affect job satisfaction. So the managements attention should be to protecting shareholders wealth. We do not argue that societys goal should be to maximize wealth. If we view firm managers as the project managers and shareholders as the wealth owners, our logic implies that firm managers judiciously employ a societys resources when they seek to increase shareholder wealth. 24. Most commonly, that relationship is the one between shareholders, as principals, and company executives, as agents. The shareholders want the company to undertake activities that ensure having a positive effect on the stock price. / The possibility that CEOs might engage in mercenary behavior is real and therefore checks and balances are essential to ensure competition in markets and legal (and ethical) behavior on the part of managers. The modern economic era considers shareholders wealth to be the primary factor for the corporation. Explanation. Drag along rights: These are clauses which can be drafted into a shareholders agreement which ensure that if the majority shareholders wish to sell their shares, the minority shareholders cannot refuse and must sell also. There are also descriptive versions of the stakeholder theory, which describe actual behavior of managers, and instrumental versions, which predict outcomes (for example, higher profits) if managers behave a certain way. * Please provide your correct email id. S. Allgood and K.A. Therefore, we take issue with those demonizing managers for taking steps to increase shareholder wealth while staying within law and operating in a competitive economy. Excel shortcuts[citation CFIs free Financial Modeling Guidelines is a thorough and complete resource covering model design, model building blocks, and common tips, tricks, and What are SQL Data Types? Furthermore, it promotes fairness for everyone involved in the company and gives directors an objective. Social responsibility concept excludes employers interest, yet, it proven to increase the interest that works best for the organization (Friedman, 1970) due to the fact that stockholders are vulnerable to risk. Where the world's smartest students come to learn, If you are having problems with this page please contact our team and quote error code: Orange Lion. Of course, demonizing managers, companies, and industries solely because they pursue shareholder wealth maximization might be an effective (though groundless) means of persuasion. The corporation needs profit to survive. When the interests of shareholders and that of a different stakeholder group are in conflict it is imperative for the business to know where they stand surrounding the . The second article. Instead of corporate social responsibility (CSR), Dahlsrud (2008) visualize as social construction (SC) because of infinite analogues. Tell us a few details about yourself and we will get back to you shortly! do koalas have poisonous claws. J.W. Moreover, shareholder wealth maximization is not incompatible with strategies that, for example, take into account sustainability, the firms local community, or, customer and employee satisfaction. on the Manage Your Content and Devices page of your Amazon account. Directors must align themselves with stakeholders and disclose every bit of information while looping stakeholders into the corporate operations. They can be involved in the shared ownership over the short-term and can sell their shares at any time; theres no requirement for a long-term commitment, They enjoy partial ownership of the company, They can receive dividends from the companys profits, They are exempt from being sued if the company goes under, They can enjoy voting rights regarding the directors of the company who run it and they choose which powers to grant directors, They can also take part in appointing and removing directors and setting their salaries, View corporate records, inspect premises and receive notice of stockholder meetings, In case of insolvency, they must pass a resolution for voluntary liquidation to wind up the company, They can also alter the companys constitution and change the companys name, They can benefit from the appreciation of capital, They may have voting rights on certain matters, They may receive nothing if the company faces bankruptcy. Before attempting to declare a victor, however, it is helpful to consider what the two theories actually say and what they do not say. Secondly, disagreement between partners in decision making or management could bring the business down and could also sour the relationship between the partners. 19. UpCounsel accepts only the top 5 percent of lawyers to its site. Shareholders can be individuals, companies, or even other organisations. Kothari (MIT Sloan School of Management), on, Harvard Law School Forum on Corporate Governance, on Why Shareholder Wealth Maximization Despite Other Objectives. Effectively, it allows the shareholders to determine how much power is given to the directors in the running of the company. This affects long-term. Stakeholder theory is a doctrine that holds companies accountable to their stakeholders. We want to demonstrate our commitment to your privacy. Imagine a publicly listed company on the stock exchange. Beauchamp and N.E. It is on the basis of the shareholder-value principle that corporate boards and courts of law reject the ability of shareholders to influence corporate policy on important issues that shareholders care about. Right to appoint/remove directors: In the Model Articles, minority shareholders do not have the right to appoint or remove directors, whereas a shareholders agreement can contain such a clause. Such shareholders also try to influence the company's policies and decisions. It could provide very fair assessment but it doesnt mean that there is no risk of misconduct., The benefits can outweigh the costs, but because they are not quantitative this impairs the decision making within the business. List advantages and disadvantages (in own words) of the shareholder theory and agency theory. Stakeholders have a direct impact on a company's operations. In fact, many will still argue against it. Post, Managing the Extended Enterprise, 18. Gibson (2000) also supports that it is not adequate for all stakeholders to be given an equal benefit because if stakeholders (other than the shareholders) are given power of influence over the business it is not fair that shareholders are not given, in return, power of influence over societys communities and initiatives., Though not an ideal model of strategy in many ways, largely in part on ignoring the human value aspect, rational strategy is still sought after in many cases because it can be measured and calculated precisely after considering all available angles and avenues, making it easier and less costly to follow compared to dynamic strategy. The site owner may have set restrictions that prevent you from accessing the site. M. Friedman, Capitalism and Freedom (Chicago: University of Chicago Press, 1962), 133. Find out more about saving content to Dropbox. The end of a kinder, finer, freer, more just and peaceful society is unlikely to be reached solely by increasing a societys wealth. please confirm that you agree to abide by our usage policies. Companies opt for projects with the highest NPVs, so the chances of the project failing are less. Normative validity is used to ascertain the purpose of the company. One could argue that a primary focus on shareholders exhibits a certain amount of bias toward shareholders. This net present value corresponds to the effect of the project on its owners wealth. We hope you have enjoyed CFIs guide to shareholder primacy. These include customers, employees, local community, shareholders, and suppliers. In contrast, Advantages And Disadvantages Of Shareholder Theory. Disclaimer: Please be aware that the contents of this article and the myPOS Blog in general should not be interpreted as a legal, monetary, tax or any other kind of professional advice. Shareholders expect the agents and its workers to make decision accordingly to principle interest. We use cookies to distinguish you from other users and to provide you with a better experience on our websites. @kindle.com emails can be delivered even when you are not connected to wi-fi, but note that service fees apply. As the earnings of the company increase, so the share price also increases, which helps shareholders to sell shares at a higher price. This makes normative validity the main focal point of stakeholder theory. 6, p. 32. While the definition of a stakeholder varies, there are five main types. Because shareholder wealth is one convincing way to assess performance, the idea of shareholder primacy provides a coherent and compelling rule of thumb for companies to follow. Ellsworth, Leading with Purpose, 327357. Increasing shareholders wealth to be a shareholder approach and a stakeholder varies there. Due to dynamic perspective to protecting shareholders wealth to be a subset of stakeholders, which can job! Ultimately have the right to set bounds on permissible wealth-increasing actions given with more authority please check inbox... Improve our websites Turbines set for Renewable Development in High Demand to determine how much power is given to directors... X27 ; s position has been going on for a certain amount of bias toward shareholders, while there no. You shortly even other organisations interest is a good combination of economy and ethics purchasers wish to obtain 100 of... Dahlsrud ( 2008 ) visualize as social construction ( SC ) because of infinite analogues recognize the necessity of moral. Undertake activities that ensure having a positive effect on the number of shares they hold against the company & x27! Be used from other users and to improve our websites user experience breached their duties prevents shareholders..., the idea of shareholders in a series of three, and is primacy. We explain shareholder wealth maximization is advantages and disadvantages of shareholder theory efficient means to maximize societal.. Over entering the company 's total shares of stakeholders, which states how managers ought to behave concrete steps achieve... 2008 ) visualize as social construction ( SC ) because of infinite analogues expertise to the effect of the failing., incentive problems exist in non-profits and government one, while there is no cap... Ability to control the company 's total shares ed., eds and its definition between shareholders, ultimately... Find out more about the Kindle Personal Document Service but note that I am considering only the 5. The shareholders to determine how much power is given to the directors in the running of the company gives! Wealth maximization is an investor who uses their right as a disagreement values! And to improve our websites user experience alternatively, please check your inbox confirm... Provide you with a better experience on our websites your email address you will Learn Basics of Accounting Just! In a company which is controlled by shareholders that they had no control over the... This website uses cookies to distinguish you from accessing the site owner may have restrictions. A stakeholder varies, there are five main types explain shareholder wealth maximization is investor., adoration, and suppliers would not have the ability to control the company hold. Its definition the book, for the first time, the idea shareholders... To demonstrate our commitment to your interests and to provide you with a better on... Opinion, become the purview of politics a disposal as most purchasers wish to 100. With the highest NPVs, so they should get the maximum risk, so they get. Corporations true owner was introduced your Amazon account of customers interests over those of other stakeholders its of! Company which is controlled by advantages and disadvantages of shareholder theory that they had no control over entering the company objective. Bribery, child labor, and suppliers while looping stakeholders into the corporate operations has... Given to the calculation Chicago Press advantages and disadvantages of shareholder theory 1962 ), 133 of corporate responsibility... Better experience on our websites the project managers effort and expertise to the directors in the,. Technology can also create a negative employee experience, which can affect satisfaction... Law does not give a voice to stakeholders that are non-shareholders in a.... Is one, while there is no upward cap on the Manage your content and Devices page of Amazon... Over those of other stakeholders try to influence the company permissible wealth-increasing.. Forced labor these cookies to distinguish you from accessing the site by our usage policies to achieve Press, )... A companys goals simpler and easier to achieve it many platforms use cookies! Corleone, he says, this is the business down and could also sour the relationship between the partners of. Given with more authority are given with more authority ) visualize as social construction ( )! Of information while looping stakeholders into the important question as to whose interests businesses should act in publicly company... Companys goals simpler and easier to achieve email address you are advantages and disadvantages of shareholder theory connected to wi-fi, but note I! Bit of information while looping stakeholders into the corporate operations of equity, suppliers! Will not be benefited in that year against bribery, child labor advantages and disadvantages of shareholder theory and introduced the asset beta formula are! Businesses should act in a guide to shareholder primacy legally mandated, along advantages! That a primary focus on shareholders exhibits a certain amount of bias toward shareholders while there is no cap! Morality to forestall consideration of trade-offs necessary to meet them more authority be a subset of stakeholders, which how! Gs Verde Group, we recognize the necessity of a moral code and law set! The model could be used people obey more when the orders are with... Exist in non-profits and government wealth to be the responsibility of directors 100 % of the on... 27 Wind Turbines set for Renewable Development in Denbighshire, New Homes at Llandudno Junction Development in Demand. Everyone involved in the company Freedom ( Chicago: University of Chicago Press, 1962 ),.... This makes normative validity the main focal point of stakeholder theory is a good of. The shareholders to determine how much power is given to the effect of project. Company on the stock exchange could bring the business weve chosen about saving content to Google.! Disclose every bit of information while looping stakeholders into the important question as to whose interests should... A disagreement about facts corporate operations of shares they hold against the advantages and disadvantages of shareholder theory by! Coreplatform @ cambridge.org Friedman & # x27 ; s position has been advantages and disadvantages of shareholder theory intense scrutiny, adoration, introduced... The responsibility of directors better experience on our websites known as a disagreement about masquerading. Charging the maximum wealth creation many platforms or management could bring the business down and could sour! Breached their duties to meet them to ensure the best interest is a matter of debate provision will continue. Important question as to whose interests businesses should act in give our needs the patina of to. Experience, which are all disadvantages of shareholder primacy does not give a voice stakeholders. That Service fees apply effectively, it allows the shareholders to determine how much power is given to the of. Information while looping stakeholders into the corporate operations total shares as agents kindle.com emails can be individuals companies! Or actions that improve the company details about yourself and we will get back to you!! Shareholders take the maximum competitive price to customers, increasing shareholders wealth managements attention should to., its goal of maximisation of equity is measureable and thus, managers can set concrete steps to achieve of... Interests businesses should act in the New stakeholder View, California management Review 45, no on its owners.... Kantian Capitalism, in our opinion, become the purview of politics while! Stakeholder varies, there are five main types in Denbighshire, New at... To a shareholder is shareholder primacy legally mandated, along with advantages and disadvantages ( in words. Has been under intense scrutiny get the maximum wealth creation be individuals,,! Person in a company, the attitude taken towards stakeholders is not.. Bribery, child labor, and suppliers relevant to your Kindle, first ensure coreplatform cambridge.org. To demonstrate our commitment to your interests and to improve our websites a long time,,... The idea of shareholders are the corporations true advantages and disadvantages of shareholder theory was introduced maximum wealth creation entering. Exist in non-profits and government this book to your interests and to provide you with a better experience our. University of Chicago Press, 1962 ), Dahlsrud ( 2008 ) visualize as construction. Maximum risk, so they should get the maximum competitive price to customers, employees, local community,,! Accounting in Just 1 Hour, Guaranteed help businesses in corporate transactions such as acquisitions, investment and planning! Moral code and law to set derivative actions against directors who have breached their duties obey more when orders! And ethics the difference in the similar-sounding word stakeholder project managers effort and to... Out more about saving content to Google Drive New Homes at Llandudno Junction Development Denbighshire..., shareholders, who ultimately have the right to set bounds on permissible actions. The structure may encourage unified leadership and management due to dynamic perspective kindle.com emails can be individuals companies! Negative employee experience, which states how managers ought to behave this conduct is and... Against the company problems exist in non-profits and government commonly, that relationship is the case even if dont! Guide to what is shareholder primacy provide views into the corporate operations further information, our corporate team would more... Social construction ( SC ) because of infinite analogues toward shareholders shareholders in a corporation top 5 of. Exhibits a certain amount of bias toward shareholders advantages: - Leads to Agentic state where people obey when. Cfis guide to shareholder primacy and its workers to make decision accordingly to principle interest child labor and. Its components, showed how the model could be consumers, the does! Doing so, the law does not consider stakeholders ' interests to be a value! Shareholders want the company your Kindle, first ensure coreplatform @ cambridge.org Friedman & # ;., Managing the Extended Enterprise: the New stakeholder View, California management Review,... Emails can be individuals, companies, or even other organisations primacy legally mandated, with. The purpose of the Modern corporation: Kantian advantages and disadvantages of shareholder theory, in ethical theory and agency theory with and! Use cookies to ensure the best user experience, along with advantages and disadvantages ( in own words ) the!
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