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3 years ago

Agency conflicts between managers and shareholders

Business

1 answer:

ollegr [7]3 years ago

6 0

Answer:

1. Yes; William is misappropriating some of Abigail’s wealth by unilaterally purchasing a nonbusiness asset using ANB’s funds.

William is enriching himself at the expense of Abigail so indeed an Agency conflict exists.

2. No; although an agency relationship exists between TGZ’s management—including Caesar as TGZ’s chairman and CEO and the firm’s shareholders—there is no agency conflict, because no expropriation or wasting of the shareholders’ wealth has occurred.

An agency conflict arises only when the agent begins to act in a way that is not in the best interest of their principal and enriches themselves at the expense of their principal. This has not happened here so there is no agency conflict.

3. Pay the manager a combination of salary and stock options (phased in over several years) that reward him or her for consistently increasing shareholder wealth.

This way the manager will have an incentive to keep working for the benefit of the shareholders overtime because it would make them well off as well.

4. MORE LIKELY

When Institutional ownership is available like Pensions and Mutual funds, they will be able to put more pressure on management as they will typically own a larger share of shares while at the same time having the expertise required to influence management.

5. INCREASED CONFLICT.

One incentive that can be used to keep management in check is the risk of Hostile Takeovers and the new management can decide to fire the management for poor performance or selfish behavior. If Congress reduces the chances of hostile takeovers, management will be more likely to engage in agency conflicts.

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Prepare journal entries to record each of the following four separate issuances of stock. A corporation issued 2,000 shares of $

Evgen [1.6K]

Answer:

A. Dr Cash $24,000

Cr common stock $20,000

Cr paid in capital in excess of par-value common stock $4,000

B. Dr organization Expense $52,000

Cr common stock $5,000

Cr paid in capital in excess of par-value common stock $47,000

C. Dr organization expense $52,000

Cr Common Stock $52,000

D. Dr Cash $89,500

Cr Preferred stock $37,500

Cr paid in capital in excess of par-value common stock $52,000

Explanation:

Preparation of the journal entries to record each of the following four separate issuances of stock

A. Dr Cash $24,000

Cr common stock $20,000

(2000*10)

Cr paid in capital in excess of par-value common stock $4,000

($24,000-$20,000)

B. Dr organization Expense $52,000

Cr common stock $5,000

(1,000*$5)

Cr paid in capital in excess of par-value common stock $47,000

($52,000-$5,000)

C. Dr organization expense $52,000

Cr Common Stock $52,000

D. Dr Cash $89,500

Cr Preferred stock $37,500

(500*$75)

Cr paid in capital in excess of par-value common stock $52,000

($89,500-$37,500)

8 0

3 years ago

Making sure that data collected on customer trends is organized is one way technology can help a business.

ANTONII [103]

Answer:

True

Explanation:

I would say this statement in TRUE. Here is my reasoning: Data collection is information learned by a business. For example: If you are a moving company and you paid for a TV commercial. Wouldn't you like to know how many people are calling you for moves based on that commercial? Of course. So asking your customers "where did you hear about us?" and hearing "The TV commercial" can identify that not only is your commercial working but that it is paying for itself with the business coming your way. Data collected is a GREAT way to run a business successfully.

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3 years ago

Nicole knows her restaurant is understaffed today. She is hoping to get through the day without falling below her customers' ___

Goshia [24]

Answer:

Zone Of Tolerance.

Explanation:

In our daily meetings with our customers, it is very important to remember that customer behavior, wants, needs, expectations are very fluid, so they depend on an immediate context, and this applies here. It would be a mistake to think that customers have some consistent rule let’s say they’ll only wait 5 minutes, that they apply to every single interaction.

Also there are some desired, perfect point, but around that point is a zone of tolerance in which all values are acceptable. Also the larger that gap, the more likely the customer will be dissatisfied.

The chief strength of this is that it explains something the expectation models do not know why customers return to companies where the service is bad.

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4 years ago

_______ is an important strategy that involves engaging in more extensive processing of information.

Elodia [21]

The correct answer is - elaboration.

By using the diversity of information that exists within different teams, the sharing as well as expansion of the knowledge is simply known as elaboration.

Elaboration of Information

In communication within the organisation and various teams, the transfer of information is the most crucial step of the entire process.
While doing the processing of information, the important strategy that is followed is “elaboration”.
It focuses on the diversity of the information which is very crucial and sometimes can be complex but crucial.
It helps in using the diverse resources of different teams in order to reach the solutions of the complex problems.

To learn more about information, visit - brainly.com/question/13629038

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2 years ago

Fernando teve uma ideia genial, conseguiu transformá-la em uma oportunidade de negócio e agora está querendo montar um empreendi

larisa86 [58]

Answer:

I. Capital Próprio

Explanation:

Considerando que Basílio seja Fernando e ele tenha dinheiro para investir na empresa (não é dito se ele precisa arrecadar o capital de fora ou não), a melhor opção seria capital próprio, onde ele teria completo controle sobre a empresa e qualquer decisão gerencial sairá dele e dele apenas. Caso ele não tenha capital para investir, a opção que menos deixa ele dependendo de outra pessoa seria o financiamento bancário, onde as decisões continuam com ele, tendo ele apenas que pagar o financiamento ao banco.

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3 years ago