between the seller / the principal and the representative / the agent is governed by the Law of Agency. A fiduciary relationship created under the law of agency in which one person has a legal authority to act for another‚ can arise from1. 1. An oral or written expressed agreement‚ whereas agent is appointed by the principal for a particular task‚ 2. Ratification of an agent’s conduct that the principle didn’t authorise‚ 3. Implied agreement created by assumed agent authority to enter into
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CORPORATE GOVERNANCE AND BUSINESS ETHICS ASSIGNMENT TOPIC: Principals (shareholders) – agent (managers) problem represents the conflict of interest between management and owners. For example‚ if shareholders cannot effectively monitor the managers’ behaviour‚ then managers may be tempted to use the firm’s assets for their own ends‚ all at the expenses of shareholders. Discuss the pros and cons of this statement with regard to duties of Board of Directors. Most organisations these
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Principal –agent conflict arise because managers & shareholders view the role of the corporation differently. Investors see corporation as investment vehicles. Shareholders want corporate managers to work diligently and efficiently towards the simple goal of maximizing the value of their ownership stake. However‚ the relationship between the managers of a corporation and its owners is complex. The principle of self-interested behavior tells that people‚ including managers and stockholders‚ work
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Freight Forwarders can act as either a Principal or Agent. Describe in your own words the differences between each. Under what circumstances might a Freight Forwarder want to act as either a Principal or Agent? When Freight Forwarders act as principal‚ they assume all responsibility and liability for the pick-up‚ handling‚ transporting and delivery of the shipment as a regular common carrier would. Their name is on the BOL. When a Freight Forwarder acts as an agent‚ their liability ends once they
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* Organizational structure + Principal*-Agent problem Principal-Agent Problem There is separation between ownership & control in most of the firm that we see today. As owners‚ shareholders appoint managers to make decisions for the company. There is another term to describe relationship between them. Shareholders are the PRINCIPAL that appoints the manager (AGENT) to act on the shareholders’ behalf so that profit can be maximize. E.g. Patient-Doctor Managers-Employees
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M/601/1699 CT232 Understand how to support positive outcomes for children and young people You have been asked to give a two short talks‚ one to parents and one to students about to start working with children‚ both talks concern understanding how to support positive outcomes. You must produce two leaflets or posters to give out at each talk which the parents or students can then display as reminders. The leaflet/poster must be supported either by a talk given to the assessor and recorded
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’Othello is the principal agent of his own downfall’. Discuss this statement. Othello is undoubtedly unfortunate to encounter a villian such as Iago‚ whose ingenuity and wicked nature enable him to manipulate a range of characters with a simplicity that comes natural to him. However‚ while the cunning and deceptive nature of Iago plays a central role in Othello’s downfall‚ such a spectacular tragedy would not have been possible without the primary flaws that the Moor possesses. Iago’s success is
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Principal-Agent Conflict with Three Dimension Analysis ----The Case Report of Conor Medsystems 2010-12-20 Corporate Finance team assignment 1 Parisa khatabakhsh 8004019769 Amanda kolobaric 881020-3920 Can Zhao 8701239231 Jin Zhang 880812F340 “…I think valuation is critical‚ but I’d also say that a deal should never go on just valuation alone. The quality of an investor‚ their understanding of the technology and space‚ and their support of the company over multiple financings are all just
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MANAGEMENT AND ORGANIZATION BEHAVIOR Name Institution MANAGERS’ SKEPTICISM TOWARDS DELEGATION OF DUTIES Delegation is ascribed as the due process where authority for a decision making process is vested on a subordinate and it is a missing case in various business markets in present day with a majority of employees feeling management is not taking it in stride to even offer them routine assignments (Collins‚ 2008). Many at times people in management positions are actively involving in checking
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The Agency Cost Problem or Principal-Agent Problem‚ which is believed‚ arises from the separation of ownership and control‚ could be mitigated in many ways. In their paper Jensen and Meckling (1976) mention that if a company fully owned by its managers‚ they will work on maximizing its value. But if a fraction of this equity owned by managers is sold to outsiders‚ the risk borne by them now will have fewer fractions than before. This will be one of the main reasons for management to act on maximizing
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