So here's what's up - two issues combine to create one big problem for business owners (and thus for investors): First - there are Agency problems which basically say that Managers and Business Owners have different priorities - for instance, even though owners hire managers to run their business, managers often want to both make as much money as they can and do as little work as possible...two things which reduce the profits of the business owner. Second - there's a problem of Information Asymmetry. This is just a verbose way of saying that the manager actually knows MORE about the business and about his/her own work than the business owner does. The more that the manager knows but the owner does not - the more opportunity the manager has to be dishonest. This relates to accounting in a few ways, but I'll just go into the most basic reason. Business owners and investors rely on financial reporting - a product of accounting - to make all sorts of decisions - one of those decisions is how much to pay the CEO (if anything). However, these financial reports have an inherent credibility issue because managers have a pretty good idea how truthful and accurate they are, but investors do not. In response, investors hire a bunch of auditors to come in check things out, to make sure that the financial reports are pretty much what they seem to be.
how does the internet reduces information asymmetry
Asymmetry is the lack of symmetry.
Informational asymmetry refers to a situation in which the parties on opposite sides of a transaction have differing amounts of information relevant to the transaction.
Information Asymmetry is when two parties are partaking in a transaction of sorts, and one party has more or better information than the other.
Nathalie Dierkens has written: 'Information asymmetry and equity issues' '\\' '\\'
Asymmetry Festival was created in 1999.
No
What does a asymmetry caused by a collapsed lung look like
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Owl
There are several advantages of asymmetry in nature, such as allowing phenotypic variations to thrive if the environment is varies greatly. Asymmetry also allows organisms to create new cells and purge old ones.
Asymmetry