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Which form of business structure faces the greatest agency problems?

Corporations, dude.


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 is corporation is more advantageous than partnership?

A corporation is more advantageous than a partnership because a corporation can be located in a US State such as Delaware that has no corporate income taxes. As a corporation shares may be sold to the public to raise funds. Corporations avoid the problems associated with partnerships in that the latter is not reliant upon a set of individuals to function and avoids the problems associated with the death of a key partner. Key partner insurance can be obtained but at a cost that reduces the profitability of the organization. Corporations also can absorb lawsuits without endangering the personal liability of the share holders. A partnership is subject to lawsuits that directly hold individual partners monetary damages. Also the name of a corporation is more easily sold along with its assets should the shareholders wish to sell the business.


What will happen if problems are not promptly solved?

Problems that are not promptly solved create more problems.


What is financial and managerial problems?

= "What is financial and managerial problems?" =

Related Questions

What are the problems encounter by multinational corporations?

Language barriers and culture shock are two of the problems multinational corporations encounter. Managers overcome this by hiring locals to work in the facilities.


Which form of business structure faces the greatest agency problems?

Corporations, dude.


When was the Sarbanes Oxley Act introduced?

Often called SOX, the Sarbanes Oxley Act was introduced in 2002 to oversee the regulations of finances at companies. It was enacted because of the problems and scandals uncovered and encountered at Enron and Worldcom.


What has the author Guthrie S Birkhead written?

Guthrie S. Birkhead has written: 'Administrative problems in Pakistan' -- subject(s): Corporations, Government, Government Corporations, Politics and government


What has the author Suresh Chandra Kuchhal written?

Suresh Chandra Kuchhal has written: 'Corporation finance, principles & problems' -- subject(s): Corporations, Finance 'Corporation finance' -- subject(s): Corporations, Finance


For many Americans the problems inherent in disaster management were clearly demonstrated by FEMA's 2005 response to?

Hurricane Katrina


What did the Temperance movement believe in?

That alcohol is evil and the cause of all of society's problems. Therefore banning alcohol will solve all of society's problems (which as was demonstrated by Prohibition is not only not true, but actually increases many of society's problems).


What has the author Stanley B Block written?

Stanley B. Block has written: 'Study guide and workbook for use with Foundations of financial management, tenth ed' -- subject(s): Corporations, Problems, exercises, Finance 'Introduction to finance' -- subject(s): Corporations, Finance 'Foundations of financial management' -- subject(s): Corporations, Finance


How do social institutions like corporations play a role in the emergence of social problems?

Social institutions like corporations can contribute to the emergence of social problems by prioritizing profit over social and environmental concerns, leading to exploitative labor practices, environmental degradation, and income inequality. Their pursuit of profit can also influence policies and decision-making that may perpetuate social inequalities and exacerbate existing social problems.


How are government corporations and private corporations similar?

They are alike in that they: - require infrastructure, facilities, and resources to function - have a management hierarchy - have many of the same human resources problems - perform many of the same information and data processing activities - are subject to legal scrutiny and oversight


What has the author George C Glover written?

George C. Glover has written: 'Materials for problems in corporate finance' -- subject(s): Corporations, Finance


What has the author Charles William Gerstenberg written?

Charles William Gerstenberg has written: 'Problems in private finance' -- subject(s): Accessible book, Corporations, Finance