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since the shareholders are the owners of the organization and therefore seek the attainment of their objectives.that is shareholders prioritizes the increase in their invested incomes and thus employ agents who happen to be managers in order to facilitate this.maximization of the company profit increase the value of the company`s and the shareholders will be assured of a favorable dividend,thus managers must attain the objectives of their principal first otherwise the principal agent problem will arise.
agency problem affects the financial manager relationship with the company by means of trust. if we are going to study the principal-agent relationship (principals=shareholders ; agent=managers,CEO,BOD), the agent will stand for and on behalf of the principal with the accompany of trust and confidence by the principals, but when agency problem occur where the agents are planning to pursue some objectives that are attractive to them while not beneficial for the principal the gap between the shareholders and the management team were created...
The agency problem is a result of the separation between the decision makers and the owners of the firm. As a result managers may make decisions that are not in line with the goal of maximization of shareholder wealth.
One disadvantage of mutual fund investing is that mutual funds are not tailored to the specific investment needs or tax status of individual shareholders
The facts of the given problem are based on the decided case of Bore land Trustee vs. Steel Bros. & Co. Ltd., in which case, the provisions in the Articles were held to binding on the members. It was held that 'Shares having been purchased on these terms and conditions, it is impossible to say that those terms and conditions are not to be observed". Thus, since Articles constitute a binding contract between the Company and its members, the shareholders shall be held bound by the stated provision in the Articles.
The agency problem arises when the interests of the principals (shareholders) of a corporation may not align with those of the agents (managers) running the company. Managers may prioritize their own interests over those of shareholders, potentially leading to agency costs such as managerial entrenchment or excessive executive compensation. Shareholders often rely on mechanisms like board oversight and incentive alignment to mitigate this agency problem and align the interests of both parties.
since the shareholders are the owners of the organization and therefore seek the attainment of their objectives.that is shareholders prioritizes the increase in their invested incomes and thus employ agents who happen to be managers in order to facilitate this.maximization of the company profit increase the value of the company`s and the shareholders will be assured of a favorable dividend,thus managers must attain the objectives of their principal first otherwise the principal agent problem will arise.
agency problem affects the financial manager relationship with the company by means of trust. if we are going to study the principal-agent relationship (principals=shareholders ; agent=managers,CEO,BOD), the agent will stand for and on behalf of the principal with the accompany of trust and confidence by the principals, but when agency problem occur where the agents are planning to pursue some objectives that are attractive to them while not beneficial for the principal the gap between the shareholders and the management team were created...
Can be a linkage problem check linkage that goes form transmission to shift the vehicle
So they can deal with problems between employees and problems with the business
Shareholders
possibly a bad linkage between your shifter and your transmission, if that's not the problem its the reverse gear in your transmission
Windshield wipers not working on a 1995 Nissan sentraTry the panel between the hood and the windshield. that is where the linkage is located. I have had problems where the linkage has broken. and the wiper will not work at all
Production managers are caught in the middle between management and staff. They have to wrestle with budgets and time schedules. they have the worst of all worlds, yet the sweetest satisfaction upon success.
The main difference is the mindset and focus: problem finding involves identifying issues or challenges that need to be addressed, while opportunity finding involves discovering potential chances for growth, innovation, or improvement. Problem finding may lead to solving existing issues, while opportunity finding may lead to creating new possibilities or advantages.
1. Internal and External Auditing System 2. Linkage between performance and incentive system: Balance Score Card
Production managers are caught in the middle between management and staff. They have to wrestle with budgets and time schedules. they have the worst of all worlds, yet the sweetest satisfaction upon success.