Agency cost incurrs when principle (i.e. Shareholders) tries to monitor or restrict the actions of agents (Managers of the company), they can use agency cost to takeover the controller-ship.
Positive side for the same is Monitoring cost (appointment of Board by shareholders and incurring cost towards them), Bonding cost and residual losses etc.
Only way to reduce these costs is to -
1. Building trusteeship with the management appointed by shareholders
2. Pointing inefficiencies and correcting the same.
3. Reducing dissatisfactions and disruptions etc.
what is the positive side of agency costs and where should we seek to balance these costs?
Under positive Accounting Theory, what are agency costs of equity and agency costs of debt? It is possible to put in place mechanisms to reduce all opportunistic action? If not, why not?
Part 1 When calculating incremental cash flows, we should exclude _____. A. sunk costs B. side effects C. opportunity costs D. taxes
This is CCJS 340 Law Enforcement Administration questions: 1-What, if any, technologies should a police agency utilize to prevent and mitigate crime and acts of terrorism? Where the use of technology may compromise Constitutional rights (e.g., privacy) which consideration is more important? 2-Should a police chief seek financial assistance from federal and state agencies to purchase and employ new technologies, equipment, and training for its anti-terrorist activities? ALL RESPONSES SHOULD BE COMPREHENSIVE AND DETAILED. THEY MUST BE SUPPORTED BY OUTSIDE...
Side PanelExpand side panel Breadcrumb: Discussions List View Topic Settings Help Search Seek and You Shall Find Seek and You Shall Find Available: Monday, January 14, 2019 12:00 AM CST - Sunday, January 27, 2019 11:30 PM CST. Subscribe K2 - Chapter Two Kendall Sociological Research Methods: This chapter is organized in a way that should be helpful for helping you to learn how sociology uses science to find the answers to society. The basic concepts for the research process...
Should we seek to impose tighter regulations on lobbyists? Why do you think this? Explain your answer with information from the readings. You can also use outside sources to support your answer.
We have a square where each side is 2cm. At the top-left corner, there is a charge of -3uc. What does the charge need to be at the bottom left corner and the top right corner so that the electric field at the bottom right corner is zero? An electron is released from rest in a uniform electric field. The electron accelerates vertically upward, traveling 4.50m in the first 3.00 mu s after it is released. What is the magnitude...
where are we getting the 3 outstanding checks for the bank side?
what are the benefits of membership in professional oragnizations/ associations? why should student seek these memeberships?
In markets where a positive externality is involved we expect:
what do we only consider the positive of the quad formula & (a) Prove that the usual formula solves the quadratic equation az + bz + c = =D0 (a + 0) when the coefficients a, b, and c are complex numbers. Specifically, by completing the square on the left-hand side, derive the quadratic formula -b + (b² – 4ac)1/2 2a where both square roots are to be considered when b2 – 4ac 0,