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: Describe about the primitive rights of shareholders?

A: Primitive rights of shareholders: Primitive rights are a contractual clause giving a shareholder the…

Q: Agency theory is related to behavior of principle and agent. Explain agency theory by giving an…

A: Agency theory is defined as the principal theory, which used to explain as well as resolve the…

Q: Analyse the bureaucratic image and bureaucratic reality.

A: The bureaucratic image and bureaucratic reality refer to two distinct perspectives regarding how…

Q: What actions that shareholders can take to ensure that management’s and shareholders’ interests are…

A: Shareholders are individuals that own shares in the company and thus has some percentage in the…

Q: Discuss the motives for business combinations.

A: A business combination is a combination of two independent firms in which one business acquires…

Q: When does an agency relationship happen

A: Agent Relationship : The official stipulations of a specific principal-agent relationship are…

Q: Define professional corporation

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

Q: What exactly is a social contract, and how does it relate to the legitimacy of an organization?

A: The Answer :

Q: conflicts that might exist in the relationship between’ i) Shareholder and managers

A: Agency relationships are relationships which exists between two parties. One party called as the…

Q: Explain the difference between public and private companies.

A: A business can be run in the form of several different legal entities that are allowed by law. So a…

Q: Agency costs are _______ costs that are paid to ____ acting on behalf of the principal to minimise…

A: Agency cost are all such cost which will be incurred in order to lower down the conflict of interest…

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: Reasons for the need for corporate governance codes

A: Introduction: Good corporate governance guarantees that the board of administrators meets on an…

Q: entity's control environment.

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

Q: Describe the agency problem in public companies

A: Definition:

Q: Define corporate governance

A: It is the basic set of principles and rules using which a corporate organization is governed…

Q: Agency problem arises due to the divergence or divorce of interest between the principal and the…

A: Since  the principals rely on agents to complete some transactions, there is disagreement over…

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: What is a social contract and how does it relate to organisational legitimacy

A: Social Contract:   Social Contract is refer as the how business interact with the society.

Q: Explain how securitisation works and what the role is of each party involved during the process

A: Financial securities are the instruments that are used by investors to invest their funds and money…

Q: Shareholder theory states that the primary objective of management is

A: Shareholder Theory is a concept that states that the shareholders are the ultimate owners of the…

Q: Explain and assess the view that rights issues are designed to protect the interests of…

A: Every corporation has a hierarchical system of rights for the three types of securities it issues:…

Q: Briefly explain the controversies around executive compensation.

A: Compensation is the return which has to be paid to the employee on whom the said employee has been…

Q: Which are the Additional Costs of Being a Public Company?

A: Introduction: A public company is a company which is owned and traded by the general public in the…

Q: What is the objective of the firm?  Why?

A: Business firm are defined as the combination of the financial, physical, and the manpower resources,…