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prisoha [69]
3 years ago
7

Which one of the following is most apt to create a situation where an agency conflict could arise?A. increasing the size of a fi

rm's operationsB. downsizing a firmC. separating management from ownershipD. decreasing employee turnoverE. reducing both management and non-management salaries
Business
2 answers:
Doss [256]3 years ago
6 0

Answer:

C. Separating Management from Ownership

Explanation:

What is Agency

The agency refers to contractural, quasi-contractual and non-contractual fiduciary relationships which represents two to three parties. The first is a person called the agent, the second is the principal and the final is a third party. Agency authorizes an agent to act on behalf of the principal and create binding relatinships with a third party.

Agency Conflict

Agency conflict represents a conflict of interest which is unavoidable in an agency relationship where one party is to act in the best interest of the other party. Specifically, in the business or corporate settings, the agency conflict arises when there is a conflict of interest between an organisation's management and the owners of the organisation.

The challenge is that management who is the agent is expected at all times to make decisions that will constantly maximize the wealth of the owners and at times, these decisions would conflict with management's ability to maximize its own wealth

Therefore, once the management of an organisation is separated from ownership especially in a Management/ shareholders relationship, an agency conflict could arise.

Andrej [43]3 years ago
5 0

Answer:C. Separating management from ownership.

Explanation:

Agency is a situation where an individual or group of individuals are acts as representative of a person or body by working towards achieving their objectives.

The separation of management from ownership is likely to draw the owners that is the principals against the agent for the owners will always be willing to influence management decisions which may not be acceptable to the management or agent.

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Answer:

creates dollars and uses them to purchase various types of stocks and bonds from the public.

Explanation:

The Federal Reserve System ( popularly referred to as the 'Fed') was created by the Federal Reserve Act, passed by the U.S Congress on the 23rd of December, 1913. The Fed began operations in 1914 and just like all central banks, the Federal Reserve is a United States government agency.

Generally, it comprises of twelve (12) Federal Reserve Bank regionally across the United States of America.

If the Federal Open Market Committee decides to increase the money supply, then the Federal Reserve creates dollars and uses them to purchase various types of stocks and bonds from the public.

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<u>Answer:</u>

<em>Open distributed computing requires a security model that directions versatility and multi-occupancy with the necessity for trust. </em>

<u>Explanation:</u>

As ventures move their figuring surroundings with their personalities, data and framework to the cloud, they should be eager to surrender some degree of control.

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3 years ago
Edwards Auto Body uses a job order cost system. Overhead is applied to jobs on the basis of direct labor hours. During the curre
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C) $6.40 per direct labor hour.

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overhead application rate = $16 / ($475 / $190) = $16 / $2.50) = $6.40

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A company acquires a 25% investment in another corporation. The reporting of this investment depends primarily onThe percentage
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To report this investment within the company's financial statements, according to IFRS, they depend into two options:

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100 POINTS** How does the book " Sounder " Represent Christianity?
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Armstrong changed his mind about the Bible. He has so many questions about that, due to which he start writing his own books to find the answers.

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