need a help in business finance 11

Stuck with a difficult assignment? No time to get your paper done? Feeling confused? If you’re looking for reliable and timely help for assignments, you’ve come to the right place. We promise 100% original, plagiarism-free papers custom-written for you. Yes, we write every assignment from scratch and it’s solely custom-made for you.


Order a Similar Paper Order a Different Paper

no cheeting from the interent” NO PLAGIARISM PLZ

Week 1: What is the big deal about the Principal-Agent problem?

2828 unread replies.5757 replies.

Investopedia defines the Agency Problem as

The agency problem is a conflict of interest inherent in any relationship where one party is expected to act in another’s best interests. In corporate finance, the agency problem usually refers to a conflict of interest between a company’s management and the company’s stockholders. The manager, acting as the agent for the shareholders, or principals (Links to an external site.)Links to an external site., is supposed to make decisions that will maximize shareholder (Links to an external site.)Links to an external site. wealth even though it is in the manager’s best interest to maximize his own wealth.

While it is not possible to eliminate the agency problem completely, the manager can be motivated to act in the shareholders’ best interests through incentives such as performance-based compensation, direct influence by shareholders, the threat of firing and the threat of takeovers.

For this discussion watch the video Party’s Over: Tyco’s Kozlowski (Links to an external site.)Links to an external site., identify different incidences where agency conflicts arose between Dennis Koslowski and the shareholders of Tyco International. Discuss why you believe they are agency conflicts and what are some ways they might be able to monitor or control for these agency conflicts.

Do not forget that your initial posting should be done no later than Wednesday night at 11:59 p.m. CT while replies to classmate postings should be made no later than Sunday night at 11:59 p.m. CT in order to be considered on time. Students may work ahead on the discussion boards but posting on past week’s boards will not allow for stimulating discussions with your classmates.

Read more: Agency Problem (Links to an external site.)Links to an external site.http://www.investopedia.com/terms/a/agencyproblem.asp#ixzz4imtHscAp (Links to an external site.)Links to an external site.
Follow us: Investopedia on Facebook (Links to an external site.)Links to an external site.

Writerbay.net

We’ve proficient writers who can handle both short and long papers, be they academic or non-academic papers, on topics ranging from soup to nuts (both literally and as the saying goes, if you know what we mean). We know how much you care about your grades and academic success. That's why we ensure the highest quality for your assignment. We're ready to help you even in the most critical situation. We're the perfect solution for all your writing needs.

Get a 15% discount on your order using the following coupon code SAVE15


Order a Similar Paper Order a Different Paper