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What is the main reason agency relationship exists in corporate form of organization?

The main reason agency relationships exist in corporate organizations is to manage the separation between ownership and control. In a corporation, shareholders (principals) delegate decision-making authority to managers (agents) to run the business on their behalf. This arrangement allows for specialization and expertise in management, but it also creates potential conflicts of interest, as agents may not always act in the best interests of the principals. Effective governance mechanisms are necessary to align the interests of both parties.


Why do organization perform differently?

Organizations exists for a defined purpose and this purpose defines objectives of an organization. Objectives differ from organization to organization that why every organization perform differently than other with different objectives.


What is the difference with primary market mortgage and secondary market mortgage?

The Primary Mortgage is that relationship that exists between a lender and a potential borrower. on the other hand, the Secondary Mortgage Market is the relationship that exists after the loan is closed and the lender markets the collateral of that loan for sale to an investor.


Write down four reasons why an organizaation exists?

Organizations are formed for many reasons, functions. The organization exists to inspire, motivate, provide emotional support, offer a quality product/service, inform, and make a profit for share-holders, owners.


Profit maximization is a primary goal of an business organization Do you agree?

Yes, businesses exists to make money. If a business isn't profitable then it will go out of business and the investors will lose money.

Related Questions

Agency relationship exist in corporations?

what agency relationship exists within a corporation


What type of agency relationship exist within a corporation?

what agency relationship exists in a corporation?


What is an organization that performs the tasks for which the organization exists?

A workforce or staff within an organization typically performs the tasks for which the organization exists. These employees are responsible for executing the organization's goals and objectives, ensuring its operations run smoothly and efficiently.


How does Velasquez describe a corporate organization?

A corporate organization exists only if (1) there exist certain human individuals placed in certain circumstances and (2) our linguistic rules lay down that when those kinds of individuals exist in those kinds of circumstances


Explain the concept of corporate entity and specify some circumstances under which corporate unit can be lifted?

The concept of corporate entity is main purpose why it exists.


Does D way travel agency UK really exists?

NO. D wat travel agency UK is a SCAMMER!!! Please dont be fooled by this agency!


What is the relationship of competition?

Competition is another relationship that exists between organisms


What is inefficiency?

Bureaucratic inefficiency refers to a failure of an organization to complete the work that it exists to perform.


What is the definition of art organization?

An art organization is an organization that exists for the promotion of the arts. They may sponsor exhibitions and classes in the local area.


When is a Warrant cancelled by the issuing agency?

After it has been served; or it has been quashed by a judge; if it is withdrawn by the agency that requested it; or the need for it no longer exists.


What type of relationship exists between the crocodile and anaconda?

What type of relationship exists between the crocodile and anaconda


What relationship exists between the weeds and the pechay?

competition