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]
2 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]2 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]2 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
When an insurance agency published an advertising brochure, it emphasized the company's financial stability and sound business p
Alex Ar [27]

Answer:

The right answer is 3. False financial statement

Explanation:

When a company gives statements about its processes that are different from those that are occurring inside it, it is considered false and misleading information. In the case of the previous approach as provided in the brochures that your financial situation is the best, we consider the answer 3 as correct since this information does not match what actually happens. therefore, in a false information.

3 0
2 years ago
Which strategy is an effective way to manage risk
eimsori [14]

Answer:

a documenting and sharing a risk

Explanation:

In the world of risk management, there are four main strategies:

Avoid it.

Reduce it.

Transfer it.

Accept it.

9 Types of Effective Risk Management Strategies

Identify the risk. Risks include any events that cause problems or benefits. ...

Analyze the risk. ...

Evaluate the risk. ...

Treat the risk. ...

Monitor the risk. ...

Avoidance. ...

Reduction. ...

Sharing.

8 0
3 years ago
Sexual harassment ADR." Jenny works at the Mexican fast-food restaurant which is owned by an international company located in Me
dedylja [7]
It is c hope I helped
5 0
3 years ago
Read 2 more answers
In the Assembly Department of Hannon Company, budgeted and actual manufacturing overhead costs for the month of April 2020 were
AlekseyPX

Answer:

Hannon Company

Assembly Department

Responsibility Report

For the month of April 2020:

                               Budget       Actual      Variance

Indirect materials   $16,000    $14,300     $1,700  F

Indirect labor           20,000     20,600         600  U

Utilities                     10,000      10,850          850  U

Supervision               5,000       5,000         0       No effect

Total                      $51,000   $50,750      $250  F

Explanation:

a) Data and Calculations:

                               Budget       Actual      Variance

Indirect materials   $16,000    $14,300     $1,700  F

Indirect labor           20,000     20,600         600  U

Utilities                     10,000      10,850          850  U

Supervision               5,000       5,000         0       No effect

Total                      $51,000   $50,750      $250  F

b) The Assembly Department's responsibility report is a the budget analysis that compares its actual and budgeted amounts of controllable costs for the month of April, 2020.  The purpose of this report is to assign responsibility, improve performance, and hold a department or center responsible for its activities.

5 0
3 years ago
A commercial bank holds $500,000 in checkable deposits liabilities and $120,000 in reserves. If the required reserve ratio is 20
scZoUnD [109]

Answer: E.) Amount created by Single Bank $20,000 and Amount Created by Banking System $100,000

Explanation:

The required reserve ratio = 20%

Checkable deposit liabilities = $500,000

Reserve = $120,000

The required reserve refers to a designated percentage of a commercial bank's deposit which is the minimum that must be held by a commercial bank. Regulation is usuay pronounced by the central bank of the nation.

Banking system loan increase :

Reserve ratio × Checkable deposit liabilities

20% × $500,000 = 100,000

Commercial bank maximum

Reserve amount - required reserve amount

$120,000 - (0.2 × 500,000)

$120,000 - $100,000 = $20,000

7 0
3 years ago
Other questions:
  • Which of the following tasks is likely to be done by the HR department?
    9·2 answers
  • The country of Norway has offers free college to students and even some universities offer free tuition to international student
    9·1 answer
  • Which tasks are done by both historians and detectives? Check all that apply.
    6·2 answers
  • Bill Blum insured his hardware store with a fire insurance policy for $88,000 at a cost of $0.84 per $100. Ten months later his
    12·1 answer
  • Why cant this be a free site? Teens my age need help and not everyone can afford to pay for help.
    14·2 answers
  • Shelli manages a small boutique in Israel. Her intern just approached her with a new design for her Web site. Shelli likes the d
    11·1 answer
  • Rutgers Racquet Club adjusts its accounts monthly. Club members pay their annual dues in advance by January 15. The entire amoun
    11·1 answer
  • XYZ Co. decided to create a petty cash fund. They estimated that $100 would be needed in the fund. Demonstrate the correct journ
    14·1 answer
  • Rosu Company has total current assets of $120,000 and total current liabilities of $50,000. What is the amount of working capita
    13·1 answer
  • Insurance is managed by employers, so if an employee is sick and loses her job, her insurance will be expensive due to preexisti
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!