Agency costs are best defined as: The cost of conflict between the banks and shareholders O The cost of conflict between the creditors and shareholders The cost of conflict between the board of directors and creditors The cost of conflict between the board of directors and shareholders

Q: The fundamental characteristic of the corporateform of business organization that gives rise to the…

A: Answer:- Correct option is A.the seperation of ownership and control

Q: What is an agent, and what is a principal? Whatkinds of situations in companies give rise to…

A: Agent: The agent is the person authorized by the principal or business to act on behalf of them.…

Q: What is the role of the Public Company Accounting Oversight Board?

A:

Q: The agency problem underlies the need for sound corporate governance. In this context, the 'agents'…

A: The agency problem is a conflict of interest inherent in any relationship where one party is…

Q: Explain breifely about the theories of accounting regulation – public interest theory, capture…

A: The four theories of accounting regulation are: Public interest theory, Capture theory, Economic…

Q: A system that establishes financial accountability for operating segments within an organization is…

A: Responsibility Accounting is a system of control where responsibility is assigned to a person.

Q: explain how financial management relates to general corporate policy

A: Financial management is a process of managing all financial resources. It is the process of…

Q: Agency theory is related to behavior of principle and agent. Explain agency theory by giving an…

A: Agency theory is defined as the principal theory, which used to explain as well as resolve the…

Q: Which of the following is not an incentive for company managers to exercise their accounting…

A: Allowing corporate officials to manage the disclosure of accounting information through the use of…

Q: Explain what is meant by agency relationships and agency costs. Why management may tend to pursue…

A: Agency Relationship: A fiduciary relationship that involves a principal and an agent is termed as…

Q: The integration of corporate sodial responsibility (CSR) into business practice is a form of…

A: Corporate Social Responsibility: Corporations' social responsibility (CSR) is a self-regulatory…

Q: or in the implementation of cor

A: Auditing plays a key role in Corporate Social Responsibility (CSR) and corporate governance.…

Q: Which one of the following statements is true? A. Conflicts of interests between management and…

A: Usually, conflicts between a company's management and its shareholders are known as agency costs and…

Q: The following questions are about corporate governance and executive compensation: (a) How does…

A: The ethics is a branch of philosophy that describes regulation, protecting, and suggesting the right…

Q: hat is the difference between internal corporate governance to external corporate governance in…

A: Internal corporate governance: Internal corporate governance controls monitor activities and then…

Q: conflicts that might exist in the relationship between’ i) Shareholder and managers

A: Agency relationships are relationships which exists between two parties. One party called as the…

Q: According to agency theory: Select one: a. The stakeholders are the principal. b. The management…

A: AGENCY THEORY In Agency Theory there are two important terms commonly used. These terms are…

Q: auditor’s written management representation

A: Option A is wrong because written representations are not made for cost-benefit justification.…

Q: Corporate Finance) How can employee compensation be designed to reduce agency costs?

A: Employee compensation is the amount paid to the employees in exchange for the services provided by…

Q: conflicts that can arise when a company is owned by group of shareholders but managed by a different…

A: The shareholders are owners of the business. As per agency theory, the management act as agents on…

Q: The agency problem between shareholders and managers is the result of separation of ownership and…

A: The agency problem is a basic concepts in corporate finance that explains the conflict of interest…

Q: Why is it important to organizationally separate the accounting function from other functions of the…

A: Accounting functions: The functions that are related to maintenance of records of the financial…

Q: When is the financial information a faithful representation? Multiple Choice If it allows management…

A:

Q: In Corporation Law, the application of the principle of “Centralized Management” has brought about…

A: Answers

Q: Discuss the agency theory, the stewardship theory, and the stakeholder theory in corporate…

A: Corporate governance refers to the system which formulates the desired set of rules and regulations…

Q: In terms of Accounting Theory: Part A - What are the symptoms of a regulatory system being public,…

A: Here discuss about the theories which are involved for public interest theory, regulatory capture…

Q: What is the difference between accounting and business government

A: Accounting: It is the process of recording any financial transactions incurred in the financial year…

Q: Agency problem arises due to the divergence or divorce of interest between the principal and the…

A: Since  the principals rely on agents to complete some transactions, there is disagreement over…

Q: d ho

A: Agency relationship : An agency connection can be understood as the fiduciary relationship in which…

Q: What should the ultimate financial aims of a company be and what role should the finance function…

A: The ultimate financial objective of business organizations is to maximize the wealth of their…

Q: what is the link between compliance with standards and the value of the firm's accounting and…

A: Accounting standards are prepared under the supervision of the Accounting Standard Board. Each and…

Q: The separation of ownership from management creates a situation in which: a. Management may act in…

A: Option (a) is incorrect as management may act in its own interest rather than that of creditors.…

Q: Managing business risk is the responsibility of the: * O Customers O Management Public Company…

A: The business risk is referred to as some situations, events, policies that can prevent a business…

Q: Explain several dimensions of the shareholder-principal conflict with manager agents known as the…

A: answer are follows

Q: A According to shankman(1999), two features make agency relations special. One of this is inherent…

A: One of the features of a special relationship represents the conflict of interest between…

Q: That companies must follow the laws and regulations including company law, tax law and environmental…

A: Internal controls are policies incorporated by the Management to safeguard the assets of the…

Q: what are the reasons financial accounting standards inspire or encourage political action and…

A: The financial accounting standards are used while accounting by all the entities which are required…

Q: Discuss the agency costs in the Agency Theory in corporate governance and solutions applied thereto.

A: Agency cost: Conflicts regarding the relative priorities between principals and their agents are…

Q: A Board of Directors duty is to: a) Safeguard the interest of a firm's stakeholders b) Protect a…

A: A Board of Directors duty is to formulate a company's strategy.

Q: Define agency problems, and describe how they give rise to agency costs. Explain how a firm’s…

A: Agency problems can be defined as the obstacles arising between management of company and…

Q: Agency cost arise from the senior management's inability to control shareholder true or False. Stat

A: Solution Concept Agency cost                 First of all lets understand the agency problem .…

Q: What are the conflicts between shareholders and managers

A: Shareholders are real owners of company as they hold proportion of common stock in company but due…