Financial Management: Theory & Practice
Financial Management: Theory & Practice
16th Edition
ISBN: 9781337909730
Author: Brigham
Publisher: Cengage
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Chapter 13, Problem 1MC
Summary Introduction

Case summary:

The product is a software platform that incorporates a wide variety of media devices, including laptops, desktops, digital video recorders, and cell phones. Suppose you decide to start a company (like person S and person M). With these issues in mind, it needed to answer the following questions for potential investors. Once it has set up your business and set up procedures to run it, the plan to expand and ultimately go nationally to other colleges in the region. The main audience is the university's student body.

To determine: The agency relationship and when to begin first operations and whether any agency conflicts exist.

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Students have asked these similar questions
. What is an agency relationship? When you firstbegin operations, assuming you are the onlyemployee and only your money is invested in thebusiness, would any agency conflicts exist? Explainyour answer.
If you expanded and hired additional people tohelp you, might that give rise to agency problems?
What is Earning management/creative accounting? How might the monitoring and bonding features of the agency model explain EM/CA?
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