Explain why an organisation can be considered to be a 'nexus of contracts' in the context of agency theory.

Q: Which of the following is the impact of agency cost?

A: Agency costs are internal costs incurred due to the competing interests of Shareholder i.e the…

Q: Define each of the following terms:a. Agent; principal; agency relationship

A: Answer: Agent: An agent is one who provides work on principal’s behalf.  Principal authorizes agent…

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

A: The agency problem is a conflict of interest

Q: Explain Regulatory Provisions?

A: Regulations: The regulation is processed by which a complex system is managed under a set of rules.

Q: Define partnership

A: A partnership is a legal agreement between 2 or more person to run the business for a foreseeable…

Q: Explain how materiality affectsaudit reporting decisions.

A: American Institute of Certified Public Accountants (AICPA): AICPA is the organization which supports…

Q: What is the difference between "Comptroller" and "Controller"?

A: Meaning - Comptroller is the person responsible for audits and expenses of the government. The…

Q: Explain principal (agency relationships)

A: Answer: Agent: An agent is one who provides work on principal’s behalf.  Principal approves agent to…

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: Define agency relationship

A: Agency relationship is the part of business law where it is a legal relationship between the two…

Q: 2. Her efforts on negotiation contracts, obtaining competitive bids and establishing control…

A:

Q: What type of contract has been formed in this case?

A: Contracts are the agreements between two parties. It gives the  option to buy,sell, lend etc. It…

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: Define contract assets.

A: Definition:   Assets: These are the resources owned and controlled by business and used to produce…

Q: Understand how variable consideration and other aspects of contracts affect the calculation and…

A: Variable consideration:  It refers to the amount of revenue that is to be recognized as per the…

Q: Define agency problems,

A: Agency problems occur when the managers use the firm's resources to invest in projects that may not…

Q: agency problem

A: The concept of Agency is established between two persons, i.e. a principal and an agent. The…

Q: Define agency conflict

A: Agency conflict denotes to the conflicts that arise between the agent and Principal. In the finance…

Q: When does an agency problem happen?

A: Agency problem is the probelm of difference in opinion of management and the shareholders.

Q: What are the similarities of the Autocratic Model, custodial Model, Supportive Model, Collegial…

A: Management and owners have official authority to govern the work and the workers that work for them…

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: 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 the purpose of organizations and why do they exist?

A: The organization  is a process that  involves the people , their strong commitment  and efforts to…

Q: Explain and distinguish the difference between a transaction, an event and an arrangement.

A: The accounting equation is expressed in the form al an equation, that is, an asset must be equal to…

Q: Determine whether a contract exists, and whether some frequently encounteredfeatures of contracts…

A: A contract exists when it has commercial substance and all parties to the contract are committed to…

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: Mutual agency is defined

A: In a partnership, two or more parties agree to operate and manage a business and share the profits…

Q: Explain the relevance of contract law to accountants. Include any ethical factors that might need to…

A: Answer: The basic principles of contract law embrace mutual assent, thought, capacity and legality…

Q: What is the cause of the agency problem and how do we try to solve it?

A: Agency Problem:  An agent is a person who acts on behalf of another person. An agent should always…

Q: Describe Contract View of Business Firm's Duties to Custómer. What is the moral duty to consumers…

A: Contract view of the obligation of the company to their customer: The view that the partnership…

Q: hey relate to each other and/or how they both relate to specific challenges in economic development:…

A: Introduction: Industrial policy is the policy which are framed by the government in order to get…

Q: Provide a comprehensive discussion on what constitute a legitimate agency shop agreement and close…

A: Here discuss about the details of the legitimate for agency shop agreement and the closed shop…

Q: . What is an agency relationship? When you firstbegin operations, assuming you are the onlyemployee…

A: Answer: An agency relationship is nothing but a relationship between agent and the principal under…

Q: What is the purpose of a responsibility accounting system?

A: Responsibility accounting system: the responsibility accounting system is an internal system that…

Q: Distinguish between responsibility, authority, and accountability.

A: Responsibility: When a sub-ordinate is obligated to perform the duties assigned to him, it becomes…

Q: Why does “Identify the performance obligation(s) in the contract,” is important? Explain with…

A: Definition: Performance obligation: A performance obligation is a promise to transfer to the…

Q: Define agency cost or problem

A: Agency problem is that problem which is a conflict of interest in a relationship where one side…

Q: WHAT ARE SOME EXAMPLES OF POLICY CREDITS AND ADMINISTRATIVE GUIDANCE

A: Policy credits: The credit limit portion specifies the maximum amount of credit that consumers will…

Q: What is conflict of interest and how do you resolve in an organisation?

A: Conflict of interest: Conflict of interest occurs when a person derives personal benefits by…

Q: How are Forward Contracts used in the business world? Name a business that might use such contract…

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

Q: How can agency problems be resolved.

A: A principal is one who hires an agent to perform some of his duties. Hence, it is the responsibility…

Q: What are the differences of the Autocratic Model, custodial Model, Supportive Model, Collegial Model…

A: An organizational behavior model is defined as the basic structure that is used to represent the…