What is meant by an agency cost or agency problem as it relates
to corporate finance? Name and discuss any two mechanisms Boards of
Directors use to control or minimise agency costs or the agency
problem?
Corporate Financial Management:
7. In corporate finance, explain what is meant by the agency
relationship. Discuss how agency costs come about and at least
three ways in which these costs can be reduced.
(50 %)
Explain what is meant by corporate governance. Why is corporate
governance important to the shareholders of a firm? Critically
assess the following statement: “the same corporate governance
rules should be applied to all companies”.
(50 %)
Explain the meaning of a dual agency
2. Define the law of agency
3. How can real property become personal property
4. What are trade fixtures
5. Explain the meaning of a power of attorney
6. What are the arguments for Corporate Social Responsibility
(CSR)
7. What are the arguments against CSR
8. Are whistleblowers heroes or disloyal employees?
9. Why are philanthropic responsibilities important to the
firm
10. What are the existing statutory legal responsibilities of
directors with respect...
3. What is meant by the principal agent problem? In the case of
the relationship between shareholders and management, who is the
principal and who is the agent? What is an example of something
that the agent in this case might do that would be in conflict with
the goals of the principal? What actions could the principal take
to try to prevent (or at least reduce) this problem?
1.describe the agency relationship between agents and
equity holders.
2.Discuss 3 agency problem associated with equity
3.Research project based on the topic of budget
deficit financing in PICs?
Problem 1 ✓
Problem 2
Problem 3 ✓
Problem 4 …
Problem 5 …
Problem 6 ✓
Problem 7
Problem 8
Problem 9
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5
STAT 213 Assignment 3: Problem 5
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(1 point)
To examine the effectiveness of its four annual advertising
promotions, a mail order company has sent a questionnaire to each
of its customers, asking how many of the previous year's promotions
prompted orders that...