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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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Cedar Designs Company, a custom cabinet manufacturing company, is setting standard costs for one of its products. The main mater
Anna007 [38]

Answer:

$29.00

Explanation:

Direct labor time standard consists of basic time plus allowance for breaks, downtime and rejections.

The direct labor standard cost per hour will be a combination of all factors relating to labor:

Carpenters' wages are $20.00 per hour.

Payroll costs are .............$3.00 per hour,

and benefits are .............$6.00 per hour.

Standard labor cost IS..$29.00 per hour.

7 0
3 years ago
Blythe Corp. is a defendant in a lawsuit. Blythe's attorneys believe it is reasonably possible that the suit will require Blythe
8090 [49]

Answer:

The entry is not required because the outcome is reasonably possible, not certain or probable. So IAS 37 says that the liability must not be recognized as the outcome is not reasonably certain or probable.

Explanation:

The liability must be included in the financial statement only if the outcome is certain or probable. In this scenario, the outcome is reasonably possible but neither certain nor probable in this situation. So the entry in the financial statement is not required. If the liability is of a huge amount then IAS 37 says that their must be a disclosure in the financial statement notes about the lawsuit.

7 0
3 years ago
Read 2 more answers
Ok i have a question: whats your dream jobs or goals in life?
Jet001 [13]

Answer:

I want to become a very accomplished writer, and a dog trainer

6 0
3 years ago
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During February 2017, its first month of operations, the owner of Schwenn Enterprises invested cash of $100,000. Schwenn has cas
olchik [2.2K]

Answer:

Cash balance is $85,000

Explanation:

In determining the cash balance of the period, we must know how much is the inflow and outflow of the cash for the period and add it or deduct to the beginning balance. It is simply, beginning balance plus inflows less outflows. February is the first month of the operation of Schwenn Enterprises, that only means the possible beginning balance of the cash is the cash investment. So to further discuss it clearly, let’s do the computation.

Beginning balance on February $100,000

Add: inflow

Cash sales $20,000

Less: outflow

payment on expenses $35,000

CASH BALANCE AT FEBRUARY 28 $85,000

7 0
3 years ago
The relationship between the natural environment and business organizations can best be described as:_________
Marina86 [1]

The relationship between the natural environment and business organizations can best be described as <u>c. Interdependent.</u>

<h3>What is interdependence?</h3>

Interdependence describes a situation where two entities engage in exchanges for their continued sustenance.

Interdependence exists in many forms and between different organizations.

For instance, the natural environment of a business provides the resources that the organization requires for productivity and profitability.  

Similarly, the natural environment utilizes the products and services of business organizations for continued development.  Business organizations also protect the natural environment for their self-interest.

Thus, there is an interdependent relationship between the natural environment and the business organizations because one cannot exist sustainably without the other.

Learn more about the interdependence of the natural environment and business organization at brainly.com/question/23479668

#SPJ1

<h3>Question Completion with Answer Options:</h3>

a. A U-shape

b. Insignificant

c. Interdependent

d. Unconnected

6 0
1 year ago
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