Agency problem
Agency problem also known as agency costs occurs in a two-party relationship (principal/agent) where the agent is expected to act or make decisions for the good of the principal.
For example in a corporate the relationship between the management and shareholders. The management is expected to make decisions that will maximize shareholders interest. The problem arises when the two parties have different interests. In the example above the manager may opt to make his own wealth and not act in the company’s best interest which could be maximizing company’s market value.
Examples of agency relationship in finance
Managers/stockholders
Managers/Creditors
Causes of conflicts between managers and stockholders may include;
Remuneration - low remunerations or fixed salaries despite increased profit margins.
Differences in risk profile- stockholders may prefer high-risk return investments contrary to the managers. When high-risk investment go bad the manager risks job loss
Manipulation of accounting systems- to reflect high profits.
Unnecessary perks management award themselves.
Solution to these problems include threat for firing in case of poor performance, shareholders may also threaten to sell the company, remuneration based on performance, incurring agency costs-these are costs incurred while hiring external auditors, setting a control system, legal costs for employment letters and contracts.
Agency problem may be reduced by motivating the manager to act for the companies best interest by offering incentives
<span> </span>
Answer:
False
Explanation:
Ribosomes transports mRNA
Do not indicate response to prescribed medication. It might
be cancerous if Pap smears conducts in an HIV-positive client, but the test
does not indicate the immune system's response to prescribed medication.
Therapeutic HAART level is the recommended medication combination given to
clients with HIV to cause an increase in the CD4+ T-cell count. CD4+ T-cell
count Improved and reduced viral load reflect the response to prescribed HAART
medication.
Answer: The center vacoule
Explanation:
Vacuoles are membrane-bounded vesicles whose functions vary in different kinds of cells. Mature plant cells generally contain a large central vacuole.
The plant cell central vacuole is a varsatile compartment. It can hold reserve of important organic material such as protein stockpiled and inorganic ions. Many plant cells use their vacuoles as a disposal sites for metabolic by-products that would endanger the cell if the accumulate in the cytosol.
Vacuoles may also help protect the plant against predators by containing compounds that are poisonous or unpalatable to animals.
