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

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nternal control does not consist of policies and procedures that Select one: a. Ensure that business information is accurate b. Protect assets from misuse c. Guarantee the company will earn a profit d. Ensure employees and managers comply with laws and regulations
What is the term for an employee who detects and tries to put an end to a company's unethical, illegal, and/or socially irresponsible actions by publicizing them? O a. corporate lookout O b. whistle-blower O c. government inspector O d. fast-track manager
Which of the following circumstances may create intimidation threats? a) Threat of dismissal or replacement of the member, or a close or immediate family member, over a disagreement about the application of an accounting principle or the way in which financial information is to be reported b) Being responsible for the employing organisation’s financial reporting when an immediate or close family member employed by the entity makes decisions that affect the entity’s financial reporting c) A dominant personality attempting to influence the decision making process for example the application of an accounting principle. d) Participating in incentive compensation arrangements offered by the employing organisation Only a) and b) Only a) Only a) , b) and c) Only a) and c)
Why do people commit fruad in there jobs? what should a manager do if some of its workers committed fraud and been fired and charged criminally.
Imagine that you are the new department manager of a corporation within your chosen field: you discover that your predecessor had been using cash basis of accounting, which has resulted in many errors and misinformation. What measures would you take to remediate the issue? Propose a high-level plan to implement a proper accounting system for your department using specific principles. For example, which financial statements would you investigate first? What sort of internal controls would you implement?
Providing safeguards against corruption and incompetence, removing conflict of interest, and improving perceptions of legitimacy are the arguments for: A. combining the roles of CEO and chairman of the board of directors B. separating the roles of CEO and chairman of the board of directors C. implementing outsourcing and offshoring to enter a foreign market D. implementing joint ventures and subsidiaries to enter a foreign market.
The operation manager of Marcoba Bhd is seeking your advice on his company's request for a computer software to be used in managing the sales of the company. He is unsure of how to obtain the computer software but realizes that different types of acquisition will impact the company's financial statement differently. He is considering the following possibilities: a) Making a purchase of the computer software externally. The quotation that he has received includes packages for payroll and general ledger. b) Making a purchase of a computer software that can be incorporated into a sales system that the company will develop. c) Signing a contract with independent programmers to develop a computer software that will specifically cater for Marcoba Bhd's own use d) Employing own programmers to write a computer software that the company will use. Required: Advice the operation manager on the impact of each possibility above on the company's financial statement
Assume that you are currently working as an accountant, and your manager has to take an unexpected sick leave. Because you did very well in your accounting classes, the Senior Accountant asks you to step up and help with the review of reconciliations. What would be your first step? Maybe you would dive right into it, assuming you would figure out what to do as you moved through all the existing reconciliations, or maybe you would ask for a copy of policies and procedures for this task if any exist, so you could find instructions without asking the Senior Accountant constantly what to do. In addition to reviewing reconciliations, you will need to review disclosures to financial statements. How would you know if all the necessary disclosures were prepared and contained correct information?
Which of the following is a remedy for the Agency Problem in the U.S.? Shareholders have the right to elect the board of directors, which can serve as an effective check if the board remains independent of management. Shareholders have the right to overrule any managerial decisions. The U.S. government directly intervenes in company decisions to ensure shareholder interests are protected. The board of directors should always take management roles in the company.
Corporate governance explains the functions that are required to be performed by the board of directors. One of these functions are to review the performance of internal auditors. There is always a chance of threat if a person stays on a position for a long time. So, it is recommended that __________. a. None of the options b. Existing auditors must be retained c. Make a job rotation from one department to other d. Try to bring new auditors after an interval
How could Pascal and Super Tech have identified and addressed this risk? What should Pascal do now? Case - Pascal is the manager of software development for Super Tech. He discovered that Bill, the lead software designer, has announced that he is leaving the company next week. Pascal finds that Bill has accepted a job with Super Tech main competitor. Pascal fear that in his new job, Bill will use technology developed while at the company and disclose the identities of key customers.
1. How do organizations create a culture of honesty, openness, and assistance? 2. What are different ways in which companies can eliminate opportunities for fraud? 3. What is the purpose of adopting a code of ethics throughout a company? 4. Why are good internal controls important? 5. In what ways can organizations discourage collusive fraud?

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