Why is it important to understand the economic systemunder which a company operates before entering into abusiness relationship?

Q: why there is material uncertainty in the company?

A: There are several problems which are faced by the companies for both internal sources and external…

Q: What are the main drawbacks of adopting the stakeholder approach as the basis for setting the…

A: A business or an organisation is run to achieve the objectives set for the organisation. The…

Q: a) What is a social contract and how does it relate to organisational legitimacy? b) Explain two…

A:

Q: How do the activities of a company benefit society?

A: Even though a company have a profit motive, a cost can benefit society in many ways.

Q: When is revenue recognized by service provider? By a merchandiser? By a manufacturer? Give examples…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Can organizations survive on a specific economic view as they become involved in international…

A: International business refers to any cross-border exchanges of products, services, or resources…

Q: 1. What problem arises as a result of the separation of ownership and management of a firm? Advocacy…

A: Since you have asked us multiple questions, we will solve the first question for you. If you want…

Q: Importance of gatekeeper in company and financial?

A: Gatekeeper     The set of institutions, as well as actors, help to provide investors with the time…

Q: What is meant by company and essential characteristics of a company?

A: Company: The form of business entity, which is incorporated by state law into a separate legal…

Q: Which type of business is considered separate from those who own it?

A: A business means an organization that involves commercial activities. the main aim of the businesses…

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: What do you think how much important is regional vs. global scope? Does it differ? What role…

A: The regional scope can be considered as local scope, related to the area in which a company is…

Q: Describe the organizational forms a companymight have as it evolves from a start-up to a…

A: organisational forms a  company : 1)sole proprietorship 2)partnership firm 3)company

Q: What is meant by solvency? What information in thebalance sheet can be used to assess a company’s…

A: Financial statements: Financial statements are condensed summary of transactions communicated in the…

Q: Explain how an enterprise determines its operating segments and the factors that influence this…

A: Operating segment refers to a component that fulfills all three features as follows: It is engaged…

Q: Using an imaginary company draft a conflict of interest policy for the entire organization

A: answer A conflict of interest policy is used to draft procedure for employees when a possible…

Q: How does the company compare with other companies in the industry?

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

Q: Why is it important for a company to operate cross-functionally?

A: Solution- Importance of cross-functional:  1-It is important for a company to operate…

Q: A branch of economics relating to the behavior of owners and managers is called as: a. Theory of…

A: Option Explanation a It deals in various theories of economics. b Management theories are…

Q: What does this mean for a company?

A: Current ratio is the ratio that measures a company's ability to pay its short term debt obligations…

Q: Why should the responsibility for maintaining the accounting records be separated from the…

A: It has generally been seen that in large organizations, the responsibility for operating the…

Q: Explain how an understanding of the industry where a company operates can directly impact its succe

A: Introduction : In simple words, industry refers to the collection of commercial activities such as…

Q: How does past knowledge of profit and loss impact your perspective on company management?

A: This Question deals with how does past knowledge of profit and loss impact your perspective on…

Q: What is a social contract and how does it relate to organisational legitimacy? and Explain two ways…

A: A social contract refers to a way in which a business interacts with society. As per social contract…

Q: What factors reduce the effectiveness of companies business plan

A: A business plan is a written document that explains all the things about business objectives and how…

Q: What factors explain the differences in company performance in the same industry?

A: For firms within the same business sector like Mcdonalds, Starbucks, burger king, etc in the…

Q: Which of the following are characteristics of economic agents?a. They participate in economic…

A: Economic Event:   Economic event means events which include transferring the ownership of resource…

Q: multinational enterprises are supported by strong and effective institutions to succeed in business.…

A: In order to conduct the business activity successfully, various institutes provide resources to the…

Q: What is the dominant form of business organization, in terms of the ownership of productive…

A: Corporation: The form of business entity ,which is incorporated by state law into a separate legal…

Q: Why is hedging relevant for a company?

A: Hedging represents the strategy of risk management in order to offset the losses associated with the…

Q: What is meant by fundamental analysis? What type of information is disclosed in fundamental analysis…

A: Fundamental analysis is the establishment of the fair market value of the company's stock. This is…

Q: Why are the customer perspective measures important when a company is doing financially well?

A: Customer perspective measures: It refers to the measures which are considered while viewing the…

Q: What should be the most important goal of a company? Why?

A: A company is an entity that has a legal identity in the eyes of law. It represents an association of…

Q: what are the accounting standards codification and how companies apply them to their activities?

A: Accounting standard: It is a set of basic rules and principles which is set by the Financial…

Q: Which one of the following characteristics of the positive accounting theory brings forward the…

A: Positive accounting theory (PAT) means to understand and predict the choice of accounting policies…

Q: Agency costs are best defined as: The cost of conflict between the banks and shareholders O The cost…

A: Agency costs are the internal costs which arise due to the conflict of interest between firm's…

Q: nt Accounting Techniques?

A: Strategic Management accounting helps in the application of Variable costing techniques in various…

Q: What does GAAP mean? Why should businesses adhere to GAAP when reporting to external stakeholders?

A: The accounting is a process to identify, classify and record the transactions of the business and to…

Q: What  are  the  main types  of  decisions  made  by  the  financial  managers  of  a company?

A: FINANCIAL manager  are managers  responsible for important decisions in the company and responsible…

Q: Accounting System Analysis

A: Accounting System analysis. It is a mordern account concept where in it no any error and very fast…

Managing Agency Conflict

Conflict is defined as an act of disagreement between two parties caused by uncertainties between them. The conflict has a negative outcome that affects both parties involved in the argument. Conflict arises when the parties' thoughts do not align or go in opposite directions. Conflicts have negative consequences for both the individual and the business. As a result, it should be avoided.