discuss the three ways of resolving the agent problem in public company

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: Discuss three ways of resolving the agency problem in public companies.

A: The agency problem alludes to an irreconcilable circumstance or conflict of interest between the…

Q: What is the common agency problem faced by shareholders? Describe TWO (2) situations in which…

A: When the conflicts of interest arise between any relationships then it is referred as agency…

Q: How does the accountant's focus on the commercial goals as a priority affect the performance of his…

A: Accountants are the professionals which have the specialized degree to prepare accounts of the…

Q: Is the agency problem an ethical issue or an Economic issue ?

A: The agency problem is a conflict of interest

Q: Elaborate two (2) approaches on how to tackle issue on the conflict of interest  between management…

A: Shareholders are the owners, they invest the amount in the company which the company utilizes fin…

Q: Define professional corporation

A: Answer: A corporation is a separate legal entity to be registered under state law from its managers…

Q: tion (b) the capture theory of regulation (c) the economic interest theory of regulatio

A: a) Assumptions in public interest theory:i. The regulatory body is considered to representthe…

Q: How can a broader conceptualization of accounts, accounting and accountability (the 3As), and the…

A: These 3As like Accounts, Accounting and Accountability are three different concept and it must be…

Q: State the differences between private sector and public sector accounting.

A: Private Sector The private sector refers to: organizations that are not government-owned, and the…

Q: Define what is meant by an agency relationship and clearly explain what an agency problem is. Use a…

A: Agency relationship is the relationship between the principal and the agent, wherein the agent…

Q: Which of the following policy decisions directly affectsemployees’ attitudes and work behaviors?…

A: employees are an inseparable part of any organization. All the planning done by the top management…

Q: Explain the principles of agency theory and discuss the ethics of directors being able to decide…

A: The directors of the company will take care of any important decisions in the company. The company…

Q: Give three examples that illustrate how cardinality reflects an organization’s underlying business…

A: The extent or degree of relationship between two or more items is shown by cardinality. 1 to 1, many…

Q: entity's control environment.

A: Control environment is a component of internal control system.

Q: Identify the party below that is not external to the firm. A vendor B government agencies C)…

A: External party is an entity, individual or organization that is outsider of firm.

Q: Discuss TWO (2) impacts of technological advancement on the management accounting practice.

A: The technology has grown at a faster pace over the past few years. Access to swift software that…

Q: Describe the agency problem in public companies

A: Definition:

Q: Should organisations operate in the interest of shareholders or the stakeholders?

A: Stakeholder means those person who use and study the financial statement and make the appropriate…

Q: Describe the relationship between business objectives and stakeholders interest.

A: Each business has certain objectives most common are maximize wealth and achieve growth but that is…

Q: Discuss the importance of good governance in the public sector

A: Introduction:- Good governance increase a positive reputation and a healthy culture within the…

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: d ho

A: Agency relationship : An agency connection can be understood as the fiduciary relationship in which…

Q: List and describe three types of action that a firm’s stockholders can take to manage the modern…

A: Modern Agency problems arise when the act of agency are not in the best interest in regards to the…

Q: What is an agency problem?

A: Agency problems also known as principal-agent problems  are conflicts of interest between managers…

Q: What are stakeholders? How do the three primary stakeholder groups influence organizations?

A: The primary motive for which an organization functions is to have profits. Profit calculation is…

Q: What are the financial and non-functional objectives that managers in an organization should pursue…

A: Every business operates and functions in the direction of certain objectives and goals and these…

Q: What is a social contract and how does it relate to organisational legitimacy? and Explain two ways…

A: A social contract refers to a way in which a business interacts with society. As per social contract…

Q: ways on how to avoid conflict of interest in an organization.

A: Conflict of interest in an organization arises when the management and the employees do no share…

Q: Managing business risk is the responsibility of the: * O Customers O Management Public Company…

A: The business risk is referred to as some situations, events, policies that can prevent a business…

Q: Explain why both financial and non-financial measures are required to evaluate and manage a…

A: Financial Measures: Financial measures, often known as financial ratios, are commonly used to…

Q: Which of the following term is related to the compliance of business ethics? O a. Public image O b.…

A: The entity needs to comply with their business ethics for long term growth and focus on both…

Q: What are the responsibilities of management described in Section 404 of the Sarbanes-Oxley Act?

A: As per Section 404 – Sarbanes-Oxley Act, It is compulsory and mandatory for all the public trading…

Q: Pick three industries and describe how the risks faced by companies within those industries…

A: Risk: is a situation where the positive results are not same if we compare the actual desired…

Q: keholders determine what are viable sources of information regarding organizational effectiveness…

A: Step 1 The efficiency with which an organization can fulfill its objectives can be defined as…

Q: CORPORATE SOCIAL RESPONSIBILITY: CASE STUDY Discuss these three steps ( short description) SNC…

A: Corporate social responsibility:- The main aim of corporate social responsibility in the terms…

Q: Discuss the agency costs in the Agency Theory in corporate governance and solutions applied thereto.

A: Agency cost: Conflicts regarding the relative priorities between principals and their agents are…

Q: The likelihood that managers may place personal goals ahead of corporate goals is called an: a.…

A: Agency Problem: The agency problem is a conflict of interest inherent in any relationship where one…

Q: Which of the following describes the awareness stage of corporate social responsibility according to…

A: CSR:-The term CSR stands for Corporate Social Responsibility. Corporate social responsibility is…

Q: How do you resolve conflict of interest in an organization?

A: An organisation operates with individuals having different beliefs, tendencies and backgrounds.…

Q: Explain why an organisation can be considered to be a 'nexus of contracts' in the context of agency…

A: Contract is the mutual agreement between two parties where one party agrees to provide goods or…

Q: Agency costs are best defined as: The cost of conflict between the banks and shareholders O The cost…

A: Agency costs are the internal costs which arise due to the conflict of interest between firm's…