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Agency problems in business occur when the interests of managers or employees conflict with those of the shareholders or owners. Examples include managers prioritizing personal gain over company success, employees slacking off, or executives making decisions that benefit themselves rather than the company. These problems can lead to decreased efficiency, lower profits, and a decline in overall company performance.

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What is equilibrium in a business?

The equilibrium in the business means that the company's after tax profit is at satisfactory level, rate of non performance assets is low, adequate depreciation has been provided for all assets of the company. Over and above, there is huge prospect for future growth of the company.


What are some common examples of agency problems in corporate governance and how can they be effectively mitigated?

Common examples of agency problems in corporate governance include conflicts of interest between shareholders and management, excessive executive compensation, and lack of transparency in decision-making. These issues can be effectively mitigated through measures such as implementing strong corporate governance practices, establishing independent board oversight, aligning executive compensation with company performance, and promoting shareholder activism and engagement.


Why do investors bother to look at the historical performance of a company when future behavior is what really counts?

This is simply because investors will have to look into past activities of the business such as the y business trend analysis to know the various performance of the business and based on this they can make future projections about the company to note whether it is profit worthy and as such there is a need to invest in it or to neglect the venture. Investors contribute a lot of funds into the running of business and will need to measure their risk of investing in the business. The only information that would be readily available to investors will be past records or historical data, which shows the true reflection of the business in terms of performance, profitability and productivity. An investor can only make decision to invest when he has knowledge of the trend within which the business has operated over the years, and this would therefore help make better future analysis of the business since history tends to repeat itself, If the company knows what it was doing in the past it is more likely to perform in the future


What is company analysis?

company analysis is a part of business. and also very important in the business


What problems or issues might a company face if it has a shortage of one or more factors of production?

There are some problems or issues a company might face if it has has a shortage of factors of production.they are as follows: 1. lack of business expansion 2. loss of clients 3.reduction in imput 4.reduction in output

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How can cross business strategic fits boost the corporate performance of a diversified company?

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What kind of company is Contact Center Performance Group?

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