What is an agency relationship? What is managerial opportunism? What assumptions do owners of corporations make about managers as agents?
An agency relationship is one in which a specialist is hired to perform the act of making decisions in a particular area of interest concerned with the organization.
Managerial opportunism is when self - seeking individuals act in their own personal best interests versus that of the company 's best interests.
Shareholders and owners of corporations assumes that the majority of managers will not take part in the opportunism ,but that it may and will occur and certain checks and balances have to be in place to keep an eye from time to time.
What is an agency relationship? What is managerial opportunism? What assumptions do owners of corporations make...
What is an agency relationship? What is managerial opportunism? What assumptions do owners of corporations make about managers as agents? (Should be a min of 400 words, properly explained) NO HANDWRITTEN ANSWERS PLEASE
Question 12 For corporations, the principal-agent relationship usually refers to the relationship between O buyers-sellers O owners-managers O manager-customer O owner-bankers
DESCRIBE THE NATURE OF THE PRINCIPAL-AGENT RELATIONSHIP BETWEEN THE OWNERS AND MANAGERS OF A CORPORATION, AND EXPLAIN HOW VARIOUS CORPORATE GOVERNANCE MECHANISM ATTEMPT TO MANAGE AGENCY PROBLEMS
Are corporations moral agents? Do they have moral responsibilities? What do you think companies should do to make themselves more moral organizations?
What is an agency relationship? Explain how monitoring costs, bonding costs and residual loss arise in agency relationships. Why would managers' interests differ from those of shareholders?
In the context of managerial accounting, relevant information is information that will make a difference in the decision. is information that has been provided by the controller. must be provided in quantitative terms. must be reviewed by the chief financial officer before being provided to managers. Good managerial accounting information helps creditors decide on good credit risks. managers to do their jobs. stockholders make informed investment decisions. creditors assess liquidity. Which of the following is a characteristic of managerial accounting...
Which of the following assertions is true? Agency costs do not involve costs that are incurred from managers pursuing their own interests at the expense of shareholder value and do not involve costs that are incurred by shareholders to make sure that managers pursue shareholder value. Agency costs involve costs that are incurred from managers pursuing their own interests at the expense of shareholder value, but not costs that are incurred by shareholders to make sure that managers pursue shareholder...
7. Agency conflicts between managers and shareholders Aa Aa Remember, an agency relationship can degenerate into an agency conflict when an agentacts in a manner that is not in the best interest of his or her principal. In large corporations, these conflicts most frequenty involve the enrichment of the firm's executives or managers (in the form of money and perquisites or power and prestige) at the expense of the company's shareholders. This usurping and reallocation of shareholder wealth is most...
Corporate managers work for the owners of the corporation. Consequently, they should make decisions that are in the interests of the owners, rather than their own. What strategies are available to shareholders to help ensure that managers are motivated to act this way? Shareholders can do the following: (Select all the choices that apply.) A. Write contracts that ensure that the interests of the managers and shareholders are closely aligned. B. Ensure that employees are paid with company stock and/or...
(a) What assumptions, approximation, or generalization do we make about peanut oil for the the purposes of estimating the calorie content of nut? (b) Briefy describe the sources of experimental error when burning a peanut and then using a calorimeter to estimate the amount of energy released.