Any situation where a potential conflict can arise between the firm's owners and its managers is referred to as a(n): Group of answer choices organisational problem. compensation issue. agency problem. personnel conflict. control issue.

Q: Example Ltd is a manufacturer. Which of the following is an example of the control function in…

A: Answer: Developing corrective actions in response to lower than expected production levels.

Q: The fundamental characteristic of the corporateform of business organization that gives rise to the…

A: Answer:- Correct option is A.the seperation of ownership and control

Q: What is an agent, and what is a principal? Whatkinds of situations in companies give rise to…

A: Agent: The agent is the person authorized by the principal or business to act on behalf of them.…

Q: Identify each of the following as a (a) purpose of an internal control system, (b) principle of…

A: Internal control: Internal control is a process which ensures continuous reliability of…

Q: Managerial accounting information provides both financial and nonfinancial information to a…

A: There are two branches of accounting. One is financial accounting and other is managerial…

Q: Accountability can have both a positive and negative effect on workplace relationships. Discuss how…

A: Accountability is answerability, risk, and the desire for account-giving. As in a part of…

Q: Explain the factors that cause fraud in managerial accounting.

A: Introduction: The discussion about fraud: Consideration of Fraud in a Financial Statement Audit the…

Q: Which of the following is NOT one of the sub-components of the control environment? Management's…

A: Control environment : control environment sets the tone of an orgaanization, influencing the control…

Q: Which one is false? A. The agency is defined as a relationship by consent between two parties,…

A: Managers are the people appointed by the firm for managing its day-to-day business operations.…

Q: Briefly explain how research and development (R&D) expenditure should be accounted for according to…

A: IAS 38: The objective of the standard is to prescribe the accounting treatment for the intangible…

Q: In order to decide whether the firm will be better off joining two distinct activities under unified…

A: Here discuss about the details of importance of the incentives which are provided to the employees…

Q: Which statement best describes the essence of the Agency Problem?   Shareholders allocate…

A: Agency problems arise when the interests of the two major parties, management and the shareholders…

Q: An ideal business tone is not O A. constructive B. detailed OC. audience-focused OD. respectful

A: An ideal business tone is the appropriate and effective manner of communication in a business…

Q: Which of the following is a characteristic of Managerial Accounting? A) Users include investors and…

A: Managerial accounting -   managerial accounting is the process of - Identification  - measurement…

Q: Discuss whether a firm with fewer employees than there are incompatible tasks should rely more…

A: Internal Controls: Internal controls are the controls established within an organization to check…

Q: What challenges does functional diversity represent for the business environment?

A: Introduction: A business environment is a confluence of internal and external elements and forces…

Q: Is it true that  IT governance is an issue for executives and top management. Lower-level managers…

A: SOLUTION   EXPLANATION - IT GOVERNMENT SHOULD ALSO INCLUDES LOWER LEVEL MANAGEMENT EMPLOYEES WITH…

Q: conflicts that can arise when a company is owned by group of shareholders but managed by a different…

A: The shareholders are owners of the business. As per agency theory, the management act as agents on…

Q: The agency problem between shareholders and managers is the result of separation of ownership and…

A: The agency problem is a basic concepts in corporate finance that explains the conflict of interest…

Q: In a decentralized accounting system, a company that gives a manager responsibility over revenues,…

A: Cost Center: The centre where manager shall be responsible for the controlling costs incurrence in…

Q: 16. The primary goal of managerial accounting is to provide information to: a. creditors b.…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Why companies tend to form teams in handling many and assignment in the organizations?

A: A team is a group of people working in a company who join together to complete a specific task. Each…

Q: Who oversees the organization’s system of internal control? a. None of the choices b. Process…

A: The internal controls are related to the organisation behaviour and process.

Q: Which type of organization that manager does not have direct control over its members? a. Internal…

A: External organization : External organization means public, Society, Body corporate, Government etc.…

Q: briefly, discusses accounting and marketing—areas where conflicts can occur and where cooperation…

A: Accounting:   Accounting refers to the process of recording the financial transactions of the…

Q: What is the strategic value of the DuPont chart?

A: The DuPont chart, which was popularized by the DuPont Corporation, is a framework for analyzing…

Q: In ,________________________ a manager is held accountable for those items, and only those items,…

A: Financial Accounting:   It refers to the process of recording the financial transactions of the…

Q: PAT assumes that managers behave in an efficient manner a. non b. False c. True d. depends on the…

A: Positive accounting theory states what will be the impact of new actions which firms choose in…

Q: "Controlling is very important for increasing the performance of employees in an organization." How…

A: Controlling is the process through which objective achievement can be made easier and effective.…

Q: Using an imaginary company draft a conflict of interest policy for the entire organization

A: answer A conflict of interest policy is used to draft procedure for employees when a possible…

Q: Which of the following is not a factor that influences a business's control environment?…

A: Business control environment: This business control environment is an internal control that operates…

Q: what is implicationstion if management refused to sign a management representative letter? If…

A: Management Representative Letter: It is the letter that is signed by the senior management of the…

Q: Which of the following measures both efficiency and effectiveness? O a social responsibility Ob…

A: Efficiency and effectiveness are the elements of any work to be done and both these components go…

Q: is not an objective of managerial accounting? a. To prepare external reports for investors,…

A: Management accounting is important because it help us to  analyse in order to make better decisions…

Q: agency costs may occur if  A. Managers make decisions for their own best interest  B. Managers may…

A: Agency costs refer to the expenses incurred by a principal-agent relationship due to conflicts of…

Q: ng does not describe a management control system? OA. A system that only measures profitability…

A: As we know that , a management control system (MCS) is a system which collects and uses information…

Q: An important focus of management accounting is decision-making authority. Everyone within an…

A: The Employees are aware of their decision-making authority that they have regarding the firm assets…

Q: Evaluating employee performance and making strategic decisions are two examples of how managerial…

A: Examples of how managerial accounting information is used, Evaluating Employees Performance Making…