An agency relationship can degenerate into an agency conflict when an agent acts in a manner that is not in the best interest of
his or her principal. In business, these conflicts most frequently 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 shareholders. This usurping of shareholder wealth is most likely to occur when shareholders do not have sufficient information about the decisions and actions being made by the firm's management. a) Consider the following scenario and determine whether an agency conflict exists:
Daniel owns Daniel's Tantalizing Tees, a T-shirt shop in a small college town in Kansas. With a staff of three part-time employees, Daniel operates the business in accordance with his personal goals, dreams, and capabilities.
1. Does Daniel have an agency conflict to deal with?
O No; by having part-time, as opposed to full-time, employees, Daniel is prevented from experiencing an agency conflict.
O Yes; as both the owner and operator of Daniel's Tantalizing Tees, Daniel has created the necessary agency relationship through which an agency conflict can exist.
O No; as both the owner and operator of Daniel's Tantalizing Tees, Daniel has not created the necessary agency relationship through which an agency conflict can exist.
O Yes; there is always an inherent conflict of interest between owners and operators (managers).
O No; as both the owner and operator of Daniel's Tantalizing Tees, Daniel has not created the necessary agency relationship through which an agency conflict can exist.
Explanation: Agency Conflict is a conflict of interest that exists between the owners of a business and their managers of the business.
DANIEL IS BOTH THE OWNER OF THE BUSINESS AND THE MANAGER OF THE BUSINESS,DANIEL HAS NOT CREATED ANY OPPORTUNITIES FOR AGENCY CONFLICTS BECAUSE DANIEL MANAGES THE BUSINESS ACCORDING TO THE WISH OF HIMSELF WHO IS THE OWNER AND THE MANAGEMENT WHO IS ALSO HIMSELF.
The Paleoanthropologists would have a greater interest in
the origin of the human ancestors because they focus on studying about the
ancestors of the humans with the distant past and they trace it back one by one
in order to find out an origin.
<span>The use of personal selling, advertising, public relations and sales
promotion is known as the promotion mix.
</span><span>The promotional mix is one of the 4 Ps of the marketing mix. It consists of public relations, advertising, sales promotion and personal selling.</span>
Section 338 allows the corporation to purchase stock and retain the basis of assets. It also allows adjusting the basis for the assets. Under section 338 the, if the corporation sold its assets, the transactions related to sale will be subjected to double tax. Whereas, if the corporation cause liquidation for the target asset's and then undergo for a sale is subjected to single tax.
Marsha and Shelby both are U.S. citizen. Marsha can claim Income credit once she is 25 years older up to 65 years of age. The individual below 25 years of age cannot claim income credit according to the tax law prevailing in U.S.
