Question
In: Finance
Explain the significance of finance in a business organization and the implications of agency relationships in...
Explain the significance of finance in a business organization and the implications of agency relationships in financial management.
Solutions
Expert Solution
FINANCE is a very important function in a business responsible for multiple primary functions like acquiring and managing funds to enable the smooth operation and growth of the firm. A well planned and devised business and financial plan is essential for the growth and development of the firm.The importance of finance lies in its ability or capacity of this function to keep a business operating smoothly without running out of funds to tactical and strategic plans of the firm. Finance relies on multiple sub functions like accounting, financial management etc.
An agency relationship is a kind of fiduciary relationship in which the principal allows an agent to act on his or her behalf. Here for the business purpose the agent is subject acts as per the principal’s control and directive and must consent to her instructions. Few examples where we can see agency relationships include relationships between employer & employee, lawyer & client etc.
jeff jeffy answered 1 year agoRelated Solutions
Explain the significance of finance in a business organization and the implications of agency relationships in...
From a business perspective, discuss .... --why is it important to understand agency relationships? --what is...
Explain how agency conflicts arise in an organization. Whatare the appropriate solutions to reduce agency...
Explain how agency conflicts arise in an organization. What are the appropriate solutions to reduce agency...
i) explain the term "agency relationships" and discuss the conflicts that might exist in the relationship...
Agency theory is a management and economic theory that attempts to explain relationships and self-interest in...
Question 1 Agency theory is a management and economic theory that attempts to explain relationships and...
Explain the significance of and relationships between audit risk, financial statement risk and detection risk.
Explain the concept of globalisation and explore its implications for business?
What are the implications of power sharing for manager-employee relationships?
- 1. Consider the following nuclides: &
- In general, teams can be described three ways. Name and define each.
- JAVASCRIPT: Please create an array of student names and another array of student grades. - Create...
- Topic - Construction: Structural, loads, tension 1.) Explain why pure tension members are the most efficient...
- Procter and Gamble (PG) paid an annual dividend of $ 1.62$1.62 in 2009. You expect PG...
- locate a recent case of online child pornography. Write a summary of the incident and describe...
- #Python 5. Write function called evaluate() that evaluates the following Python expressions or assignments as specified:...