1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
What is one negative element about automated call answering service
avanturin [10]

Answer:

C. They are impersonal, which can result in dissatisfied customers.

Automated call service systems can help you, but if you have a more in depth question, it can't. The automated voice is impersonal, they don't show any emotional qualities, so they can't say, "sorry that happened to you," or, "sorry for the wait," (etc).

3 0
3 years ago
Read 2 more answers
Oshua usually ignores the little voice that says he should spend more time with his sick grandfather. He is​
emmainna [20.7K]
Joshua usually ignores the little voice that says he should spend more time with his sick grandfather. He is​ not living consciously.<span>Every human being should </span>live<span> his or her life as </span>consciously as possible. <span>The state of living conscious means that you are now the one who makes his very own choices that come from deep within yourself.</span>
8 0
4 years ago
Number line shows the best estimation for the sum of 3,282 and 5,964?
BARSIC [14]
The best estimation is 9,000
3 0
3 years ago
ABC stock is currently trading at an all-time high price of $150 per share. Your client contacts you about the stock, stating th
UkoKoshka [18]

Answer:

Buy ABC Puts

Explanation:

Based on the information provided within the question it can be said that the best recommendation to the client is to Buy ABC Puts. This is mainly due to the fact that the client specifically stated that he does not want to lose more than this investment. Therefore Puts are the best option since they are purchased as a speculation on a market price decline, and the customer can only lose the premium paid if the market does the opposite and ends up rising. While other options like shorting or selling can lead to unlimited loss potential.

7 0
3 years ago
choose the correct answer. what was a drawback of the sherman antitrust act? a. it was too vague to prevent monopolies. b. it wa
JulijaS [17]

The drawback of the Sherman antitrust act is option  A: It was too vague to prevent monopolies.

<h3>What was the drawback of the Sherman Antitrust Act?</h3>

The Sherman Anti-Trust Act was known to be the very first Federal act that was said to have  been against any form of monopolistic business practices.

Note that even though they had outlawed those kind of business, the  Sherman Anti-Trust Act was  not able to guide against them.

Therefore, based on the above, The drawback of the Sherman antitrust act is option  A: It was too vague to prevent monopolies.

Learn more about Sherman antitrust act from

brainly.com/question/25010501
#SPJ1

5 0
2 years ago
Other questions:
  • Which of the following is an example of an illegal interview question?
    15·2 answers
  • Documents with a lot of text and not much white space:_______
    11·1 answer
  • An investment of $10,000 has an investment/inflow ratio of 6.2 and a useful life of12 years. What are the annual cash inflow and i
    5·1 answer
  • Which of the following statements are TRUE about credit scores?
    7·2 answers
  • Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $70,000 or $200,000 with equal p
    6·1 answer
  • What is accountancy​
    11·2 answers
  • Which form of business organization is established as a separate legal entity?
    14·1 answer
  • The accounting treatment for a lawsuit depends on: _________
    10·1 answer
  • A data set is summarized in the frequency table below. Using the table, determine the number of values less than or equal to 6 .
    9·1 answer
  • nonprofit organizations rely heavily on free space or time donated to them by the media, which is known as
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!