Agency relationship agency conflict and agency costs1

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Agency relationship, Agency conflict and agency costs.

1. Define what is meant by the agency relationship, the agency conflict, and agency costs.

2. Idntify several examples of agency costs and discuss why agents might impose such costs on their principles.

3. Show the role accounting and financial reporting might play in assisting the principals to achieve their goal of minimizing agency costs.

4. What are the issues that owners must deal with in requiring managers to prepare financial statements? What can the owners do to help overcome these issues?

Reference no: EM13365009

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