Which of the following would constitute an Agency Problem in the context of Business? Check all of the following that apply.Check All That ApplyA manager authorizes a trip to Europe for himself at the company's expense even though he has no intention ofdoing any company business while on the trip.A manager makes a bad decision that costs the company tens of thousands of dollars, but he believes he is actingIn the company's best interest rather than his own in making the decision.An employee takes home a box of pens for personal use without prior authorization,A manager turns down a project that analysis has shown to be profitable for the company because she is afraid ofnegative consequences for herself if something goes wrong.

An agency problem is a conflict of interest between an agent and a principal. An agent can be an…

Answered: Which of the following would constitute…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

Which of the following would limit the independence of the Internal Audit function? The Internal Audit function reports to the Audit Committee. The remuneration package of the Internal Audit function includes a bonus based on profit for the year. The Internal Audit function has too many staff for the work available. Several of the Internal Audit function staff are qualified accountants but several others are not.
Which of the following are problems when outsourcing the internal audit department? i) The outsourcer may be reluctant to report problems and lose the contract. ii)The outsourcer may not be aware of the culture in the organisation. iii)The cost of the outsourcer may well be high. iv)The company will have to have it’s own Internal Audit department as well. v)It may be that the distinction between external and internal audit is blurred when the internal audit function is outsourced. i), ii) iii) & v) only iii), iv) & v) only All of the above iii) and v) only
The SEC is trying to get companies to notify the investment community more quickly when a "material change" will affect their forthcoming financial results. In what sense might a financial manager be seen as "more ethical" if he or she follows this directive and issues a press release indicating that sales will not be as high as previously anticipated? A manager at a "Check Into Cash" business (see Focus on Ethics box on page 192) defends his business practice as simply "charging what the market will bear." "After all," says the manager, "we don't force people to come in the door." How would you respond to this ethical defense of the payday-advance business? Bond rating agencies have invested significant sums of money in an effort to determine which quantitative and nonquantitative factors best predict bond defaults. Furthermore, some of the raters invest time and money to meet privately with corporate personnel to get nonpublic information that is used in assigning the issue's bond…
You need to go the office of DTI if you will register your corporation. true or false? Registering your business trade name is done in the office of SEC C. Mayor’s Office DTI D. Philhealth Office Which of the following is not a benefit of record keeping? It will not help in managing potential risks. It will measure profit and performance. It will protect the rights of the owner. It will not let you know how much you are earning.
Consider again Milton Friedman’s article. 1. What does Friedman mean by “ethical custom”? 2. If the laws of the society are limiting the company’s profitability, would the company be within its rights to disobey the law? 3. What if the law is “on the books,” but the company could count on a lack of enforcement from state officials who were overworked and underpaid? Should the company limit its profits? Suppose that it could save money by discharging a pollutant into a nearby river, adversely affecting fish and, potentially, drinking water supplies for downstream municipalities. In polluting against laws that aren’t enforced, is it still acting “within the rules of the game”? What if almost all other companies in the industry were saving money by doing similar acts?
10. The primary objective of a(n) ________ is to assist two feuding parties in coming to a mutually agreeable solution. A. Negotiator B. Manager C. Mediator D. All of these 11. If a workplace conflict is affecting either your or someone else's performance: A. Bring it to the attention of a supervisor B. Contact a private attorney or government agency if you feel the company is not properly handling the situation C. Document D. All of these 12. ________ harassment includes any behavior of a sexual nature by another employee that is offensive. A. Hostile behavior B. Quid pro quo C. Sexual D. Pro bono
Internal Control System Required: A list of terms and another list of definitions and examples are presented below. Match the directly related definition or example with the each term. Strategic risk Control environment Information and communication Business process risk Monitoring A member of upper management was fired for violating the company's code of conduct. The internal audit group is testing the operating effectiveness of various internal control activities. Competitors begin offering extended warranty coverage on products. Problems with our suppliers have resulted in lost sales because our stores were out of stock. Reports documenting problems with production are forwarded to management.
Select the necessary words from the list of possibilities to complete the following statements. 1. The Foreign Corrupt Practices Act of 1977 prohibits 2. companies to maintain an effective system of internal control. Statements Under COSO, the control environment, risk assessment, the accounting information and communication system, control activities and monitoring are referred to as the of internal control. to foreign officials to obtain business and requires No single employee in a company should have incompatible 3. and conceal errors or fraud in the normal course of performing his or her job. 4. The two broad categories of information processing controls are 5. Controls that rely on segregation of duties may be circumvented by 6. A client's organizational structure. 9. allowing the employee to both perpetrate and application controls. environment includes such components as management philosophy and operating style, and 7. A form of insurance in which an insurance company agrees…
In the scenario, where employer has been putting more emphasis on controlling costs for the various businesses. With the slowing of overall spending in one sector, while ordering managers to closely monitor expenses, selling several companies and giving vice presidents greater responsibility for statements of financial positions. Whatpositive and negative consequences might this pose to the company in future fraud prevention? Outline at least three of each type.
1. Would an auditing-standard convergence prevent fraud at the top-executive level? If No, how to deter top executives from engaging in illegal conduct? 2. As an accounting professional, what can you do better than a machine or artificial intelligence? If accounting and auditing standards are 100% rules-based without any judgment, would there be more or less accounting jobs for us?
Which of the following statements is false regarding the ethical obligations of professional accountants? Multiple choice question. they must seek to maximize the owners' profits. they must continually upgrade their skills in order to be competent their obligations are outlined in a code of ethics. they must treat sensitive information confidentially Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Preventing Job Withdrawal Preventing highly valuable employees from leaving is an important strategy that cannot be ignored. It is not only the cost of losing these employees but also the loss of essential knowledge and the effect on company morale. Organizations can mitigate voluntary turnover by recognizing signs of a progression of withdrawal and taking actions to retain these individuals. Employees may show signs of job withdrawal through behavior change, physical job withdrawal, and psychological job withdrawal. In this exercise, please read the following mini-case and answer the question that follows. Work had become so burdensome for Michelle that she dreaded having to show up every day. Michelle was recruited from a competitor of the company, and during her first month she excelled in her performance. Her managers and co-workers at first welcomed her and were quite friendly. They had however become somewhat complacent in their jobs and began to be a bit jealous of…

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS