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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Answer:
Reaction 1
Explanation:
Reaction 1 would be the most suitable in this case. This is so because in reference to the question you are wanting to keep the food warm over long periods. So in reference to the data in the chart reaction 1 continues to heat up over long periods of time. However, with the other reactions (2, 3, 4) temperatures vary and some even decrease constantly. Therefore showing that the other reactions are invalid to help reach your goal referencing back to the question.
Areas with the warmest is the surface
Jb Kown, the anthropologist in question, compares the fieldwork settings by their <u>fight for equality.</u>
Such is the case in many countries around the world, South Korea at times struggles to maintain equality in all of its settings, such as in factories. Anthropologist jb Kwon researched factory workers and found that <u>inequality </u>is present in the form of job and wage distribution between men and women.
The anthropologist Jb Kwon compares this with the anti-racist work he took part in after the Micheal Brown incident in that they are both done to argue <u>for </u><u>equality </u><u>among all people</u>, regardless of <u>gender</u>, <u>race</u>, or <u>background</u>.
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6. Is A... the amount of nitrogen, oxygen, and other elements dissolved in water
7. Is B... grows quickly