The agency problem between shareholders and managers is the result of separation of ownership and management conflict of interests between shareholders and managers information asymmetry between shareholders and managers all of the above

Q: The fundamental characteristic of the corporateform of business organization that gives rise to the…

A: Answer:- Correct option is A.the seperation of ownership and control

Q: The agency problem underlies the need for sound corporate governance. In this context, the 'agents'…

A: The agency problem is a conflict of interest inherent in any relationship where one party is…

Q: What is the common agency problem faced by shareholders? Describe TWO (2) situations in which…

A: When the conflicts of interest arise between any relationships then it is referred as agency…

Q: Managerial accounting information provides both financial and nonfinancial information to a…

A: There are two branches of accounting. One is financial accounting and other is managerial…

Q: Which governance model involves shareholders  and creditors as the main factors

A: In comparison with investors, who put money into a company by buying shares and therefore becoming…

Q: discuss the three ways of resolving the agent problem in public company

A: Principal agent problem arise when there is a conflict between interest of principal and agent. This…

Q: Explain the factors that cause fraud in managerial accounting.

A: Introduction: The discussion about fraud: Consideration of Fraud in a Financial Statement Audit the…

Q: Internal users of accounting information: Multiple Choice Are not directly involved in operating a…

A: Generally, internal users of the financial information are the people within the organization who…

Q: What actions that shareholders can take to ensure that management’s and shareholders’ interests are…

A: Shareholders are individuals that own shares in the company and thus has some percentage in the…

Q: Which one of the following is not the underlying principles of the corporate governance? Fairness…

A: Corporate governance means management of the corporate or companies with the help of rules,…

Q: Which one is false? A. The agency is defined as a relationship by consent between two parties,…

A: Managers are the people appointed by the firm for managing its day-to-day business operations.…

Q: Which of the following is NOT a dimension of corporate governance:     Select one: a. Suppliers…

A: Corporate Governance Corporate governance is a structure or a system of organization's rules,…

Q: Managerial accounting information generally pertains to an entity as a whole and it is directed…

A: True

Q: Elaborate two (2) approaches on how to tackle issue on the conflict of interest  between management…

A: Shareholders are the owners, they invest the amount in the company which the company utilizes fin…

Q: Which statement best describes the essence of the Agency Problem?   Shareholders allocate…

A: Agency problems arise when the interests of the two major parties, management and the shareholders…

Q: Who is responsible for the Governance function? a. Board of Directors b. Internal Auditors c. None…

A: Governance is the process of reviewing processes and operations in the organisation, so that all…

Q: hat is the difference between internal corporate governance to external corporate governance in…

A: Internal corporate governance: Internal corporate governance controls monitor activities and then…

Q: Which statement regarding management accounts is true?

A: Mnagement accounts are the financial representation of the financial data of the company. Unlike…

Q: conflicts that might exist in the relationship between’ i) Shareholder and managers

A: Agency relationships are relationships which exists between two parties. One party called as the…

Q: Agency costs are _______ costs that are paid to ____ acting on behalf of the principal to minimise…

A: Agency cost are all such cost which will be incurred in order to lower down the conflict of interest…

Q: Transparency

A: Management and directors should act in a transparent manner in the affairs of the company. It is an…

Q: Is it true that  IT governance is an issue for executives and top management. Lower-level managers…

A: SOLUTION   EXPLANATION - IT GOVERNMENT SHOULD ALSO INCLUDES LOWER LEVEL MANAGEMENT EMPLOYEES WITH…

Q: Within the context of financial management, it is important that organizations attempt to align…

A: In the world of finance agency conflict is a tangible problem facing companies. Agency conflict, in…

Q: n what ways do accounting firms differ from one another?

A: solution concept accounting firms Accounting firms means a firm established for the purpose of…

Q: In a public corporation, the agency conflict is: O the exploitation of the workers by the owners the…

A: Agency Conflict refers to Conflict between the agents and owners of the company  Agents refers to…

Q: In a decentralized accounting system, a company that gives a manager responsibility over revenues,…

A: Cost Center: The centre where manager shall be responsible for the controlling costs incurrence in…

Q: Who oversees the organization’s system of internal control? a. None of the choices b. Process…

A: The internal controls are related to the organisation behaviour and process.

Q: One reason for the existence of agency problems between managers and stockholders is that:…

A: The agency problem, also known as the principal-agent problem, arises in situations where there is a…

Q: Which type of organization that manager does not have direct control over its members? a. Internal…

A: External organization : External organization means public, Society, Body corporate, Government etc.…

Q: briefly, discusses accounting and marketing—areas where conflicts can occur and where cooperation…

A: Accounting:   Accounting refers to the process of recording the financial transactions of the…

Q: Identify if statements are true for the corporate form of organization. Ownership rights cannot be…

A:

Q: Agency problem arises due to the divergence or divorce of interest between the principal and the…

A: Since  the principals rely on agents to complete some transactions, there is disagreement over…

Q: What is the implication of managerial entrenchment: should company favor debt or equity? Why?

A: Managerial entrenchment theory-says that allotment of shares inside the organization such as…

Q: A company’s controller is least concerned with: a. Provision of capital b. Information processing…

A: Controllers refer to a person in a company who managed the financial departments which is helpful in…

Q: True / False Determine whether each sentence is True or False: Financial accounting reports are…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Managerial accounting reports are used by external users unlike financial accounting. TRUE FALSE

A: Managerial accounting reports are strictly for use by internal users i.e. management. However…

Q: Shareholder theory states that the primary objective of management is

A: Shareholder Theory is a concept that states that the shareholders are the ultimate owners of the…

Q: An objection to managing a firm on behalf of stakeholders rather than shareholders is that​ _

A: Stakeholders are different from shareholders. Stakeholders refer to those who are impacted by the…