Which of the following is not correct regarding  the agency theory of the principal-agent relationship?

Q: What is the ethical dilemma you face? What are the ethical considerations? Consider your options a

A: Solution- An ethical dilemma (ethical paradox or moral dilemma) is a problem in the decision-making…

Q: Which of the following is not an aspect of action control? Select one: O a. To define objectives O…

A: Action control refers to controlling activities within an organization to achieve the desired…

Q: 3.) Which of the following is considered emotional biases?    A. Loss aversion, overconfidence,…

A: Emotional biases are biases in decision-making that result from emotions. They are harder to correct…

Q: DUE CARE (AICPA) What are some examples of a difficult situation that due care may face? What would…

A: The objective of this question is to understand the concept of 'Due Care' as per the American…

Q: True or False: While everyone seems to accept the idea that attention must be paid to organizational…

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: Ethical lapses and poor judgement often come from a sense of entitlement. What are some things a…

A: How can ethical Judgement be improved?As ethical behaviour becomes increasingly important in…

Q: The primary purpose of éstablisHing qUi to accepting a new client is to: 1. Enable the CPA firm to…

A: Introduction:- The main purpose of establishing quality control policies and procedures regarding…

Q: If a MARR is given by management, which means that decision makers would like a ROR: Select one: O…

A: Rate of return means the percentage of profit we get from any project and MARR means the minimum…

Q: The buyer runs a risk of being sold a good of low quality when there is a principal-agent problem.…

A: There exists risk of being sold because any one can buy shares and become owner of company.

Q: 14) Abusive behavior is difficult to assess and manage because of A) different rating companies. B)…

A: Introduction: This question related to the concept of business ethics and social responsibility.…

Q: A manager using an adversarial intervention exerts high control over both the process and the…

A: An adversarial intervention involves a manager taking a confrontational or adversarial stance toward…

Managing Agency Conflict

Conflict is defined as an act of disagreement between two parties caused by uncertainties between them. The conflict has a negative outcome that affects both parties involved in the argument. Conflict arises when the parties' thoughts do not align or go in opposite directions. Conflicts have negative consequences for both the individual and the business. As a result, it should be avoided.