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what agency relationship exists within a corporation

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15y ago

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What is the main reason that an agency relationship exisist in corporations?

when an employee work in the best interest of the organisation


What type of agency relationship exist within a corporation?

what agency relationship exists in a corporation?


Why does the listed company will exist agency problems?

The primary reason for the divergence of objectives between managers and shareholders has been attributed to separation of ownership (shareholders) and control (management) in corporations. As a consequence, agency problems, or principal-agent conflicts exist in the firm.


Why do corporations exist?

The reason that corporations exist is to serve people. They are there to provide jobs, services, products, and benefits.


Who started the first health insurance agency in the us that specialized in hispanic owned corporations?

Who started the first health insurance agency in the us that specialized in hispanic owned corporations?


What agency replaced the bureau of corporations?

Federal Trade Commission


Why an agency relationship exisits in corporations?

An agency relationship exists in corporations because shareholders (principals) delegate decision-making authority to managers (agents) to run the company on their behalf. This arrangement allows shareholders to benefit from the expertise and day-to-day management provided by executives, while also enabling them to diversify their investments. However, the separation of ownership and control can lead to conflicts of interest, as managers may prioritize their own goals over those of the shareholders. Thus, mechanisms such as performance incentives and oversight are often implemented to align interests and mitigate potential agency problems.


Domestic Corporation in Philippines?

There are hundreds of domestic corporations in the Philippines. A list of all domestic corporations can be obtained from the Philippine taxing agency.


What government department in California deals with the different corporations there?

The Department of Corporations was California's main agency dealing with the registration and monitoring of corporations. In July 2013 the Department of Corporations and the Department of Financial Institutions merged to form the Department of Business Oversight.


Why were corporations better for large businesses than partnerships?

Corporations could continue to exist after managers died. Corporations could quickly raise money by selling shares of stock. Corporations can grow much faster.


Did corporations develop rapidly in the 1830s when legal obstacles to their formation were removed?

"Corporations" did NOT exist in the 1830s, and in fact, there were very few "companies".


Which form of business structure faces the greatest agency problems?

Corporations, dude.