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 a disadvantage of the payback method?
HACTEHA [7]

The statement " It eliminates the inflows of cash earned following the payback period and time value of money" is the disadvantage of the payback method

The payback period is the period thats tells the time period in which the initial investment that was made should be recovered.

It is to be measured in years normally.

For finding the disadvantage, we need to find out the following information related payback period

  1. It is easy to calculate
  2. The cash flows earned after the payback period should not be used
  3. There is no requirement to determine the present value factor for measuring the payback period.
  4. Also, it does not use for distinct cheap projects from lower ones

So this is the reason this method ignored the times value of money

Therefore, we can conclude that, the correct option is b.

Learn more about the payback method here: brainly.com/question/16255939

5 0
3 years ago
9. OMG Corporation just paid a $1.50 annual dividend on each share. It is planning on increasing its dividend by 15 percent a ye
Afina-wow [57]

Answer:

ggdhdhdhdhdjdhdhdhdhdhdhdhdhdbdbdbdbdbdbdbdbdbdbdbdbdbdbdndndndndbrbdbdbdb

Explanation:

bdbdndhrhehrhrhrhdhdh

5 0
2 years ago
Buckshot Electronics is a chain of electronics superstores that is located throughout California. They have 15 locations concent
prisoha [69]

Answer:

Explanation:

Given that:

annual demand = 7800 units

wholesale price = $325

retail price = 399

The per-unit cost for each item = $399 per unit

The annual cost to purchase the items = Annual demand × wholesale price

= annual demand × price of the wholesales

= 7800 × 325

= $2535000

8 0
3 years ago
Nonprofit organizations face __________ regulations when compared to the requirements of for-profit businesses.
guajiro [1.7K]

Answer:

b more

Explanation:

because non profits receive better benefits from the government so they have to follow stricter regulations

8 0
3 years ago
Read 2 more answers
In the context of planning a training program, even though it is time-consuming, putting together a _____ is worthwhile because
tekilochka [14]

Answer:

Request for proposal

Explanation:

The correct answer is a request for proposal. A request for proposal (RFP) is a business document that announces and gives detailed explanations about a project, it also helps an organization solicitation of bids from contractors who will help in the completion of the project. organization clarify training objectives, compare vendors, and measure results.

6 0
3 years ago
Other questions:
  • _______ used to create an application that is helpful in designing business process models and also helpful in simulating, optim
    11·1 answer
  • Tyrell has a bankruptcy on his credit report and therefore pays higher interest rates on his current loans. He calculates that t
    5·1 answer
  • Which of the following are included in the employer's payroll taxes?
    15·1 answer
  • Ruben is a shareholder of speed bikes company (sbc). when the directors fail to undertake an action to redress a wrong suffered
    6·1 answer
  • What is your view of abortion?
    5·1 answer
  • Patagonia, a multinational sports apparel company, is planning to launch its extreme weather gear product line in Nepal and the
    5·1 answer
  • Vhich of the following is a description of a pullback device?
    5·1 answer
  • Paolucci Corporation's relevant range of activity is 8,400 units to 17,000 units. When it produces and sells 12,700 units, its a
    9·1 answer
  • A coal mine cost $ 1 comma 001 comma 000and is estimated to hold 57 comma 000tons of coal. There is no residual value. During th
    5·1 answer
  • What reasons might people have to go into debt? Give two examples. <br> HRGGGGGHH
    8·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!