Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN: 9781337395083
Author: Eugene F. Brigham, Phillip R. Daves
Publisher: Cengage Learning
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Chapter 10, Problem 1MC
Summary Introduction
Case summary:
Person X is decided to start a company relating to software products which integrates a wide range of media devices like laptops, desktop computers, cell phones and digital video recorders. He has selected student body at his university as an initial market.
Once his plans are successful and he will decide to expand its business to other colleges and areas and eventually to go national wide. Later he will plan to go public issue with an IPO to buy a yacht. These points are kept in mind while deciding the potential investors of his company.
To discuss: Agency relationship and whether there is any agency conflict exist when person X is only an employee and sole owner of the company.
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