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
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Well,
If you use the Punnett square chart, you would see that men get 50% and boys 50%
Hence, since both of them are heterogeneous recessive, it would B) C or c only.
Perform regular resistance exercise
Life needs energy, water, heat and nutrients. Reduce the availability of one or more of those things and biodiversity generally decreases.
Tropical forests tend to be more diverse than polar ice caps. However, arctic seas tend to be more biologically interesting than the middle of the Sahara. I bet this is what your homework is looking for but it's important to remember there are counterexamples.
Answer: A. True.
Explanation:
The AIDS virus may constantly change it's form in the host body by mutating. The body immune system becomes unable to produce antibodies which can fight against these mutated cells.
Also, the vaccination used for the purpose of immunization will not be able to combat will the causative agent in the body of the host. As the vaccine contains the microbe which can fight against the virus present in the body. But as the virus is changing it's form the microbe may not be able to compete with the virus. Hence, the use of vaccine will become useless.
