User Account

All Pages

What is an agency relationship

Assignment Help HR Management
Reference no: EM132875446

TNT Ltd has a paid up share capital of 1.2 million shares of Sh.20 each. The current market price per share is Sh.36. The company has no loan capital. Maintainable earnings before tax are forecast at Sh.4.8 million. The company?s effective tax rate is 40%. The company requires to raise a further Sh.15 million in order to achieve additional earnings of Sh.2.2 million per year and proposes doing this by means of a rights issue. Suggested alternative prices for the rights issue are Sh.32 and Sh.25 per share.

-What is an agency relationship? When you first begin operations, assuming you are the only employee and only your money is invested in the business, would any agency conflicts exist? Explain your answer.

-If you expanded and hired additional people to help you, might that give rise to agency problems? Explain your answer

-Suppose you need additional capital to expand, and you sell some stock to outside investors. If you maintain enough stock to control the company, what type of agency conflict might occur?

-Suppose your company raises funds from outside lenders. What type of agency costs might occur? How might lenders mitigate the agency costs?

-Suppose your company is very successful, and you cash out most of your stock and turn the company over to an elected board of directors. Neither you nor any other stockholders own a controlling interest (this is the situation at most public companies). List six potential managerial behaviors that can harm a firm's value.

-What is corporate governance? List five corporate governance provisions that are internal to a firm and under its control. What characteristics of the board of directors usually lead to effective corporate governance?

-List three provisions in the corporate charter that affect takeovers.

-Briefly describe the use of stock options in a compensation plan. What are some potential problems with stock options as a form of compensation?

-What is block ownership? How does it affect corporate governance?

-Briefly explain how regulatory agencies and legal systems affect corporate governance.

Reference no: EM132875446

Questions Cloud

Facilitate implementation of high-performance work practices : -Describe at least three reasons why the presence of a union may facilitate the implementation of high-performance work practices (HPWP) and at least two reason
Creates the under-investment problem : The cost of capital is 13%. Using the above information, calculate the performance measure that potentially creates the under-investment problem
Prepare journal entries to record the transactions : Prepare journal entries to record the following 2017 transactions: The write-off of $72,000 and The recovery of $40,000
Case study upper rubber boot news company : The URB News Company carries on business as a newspaper publisher and general print shop. The firm was founded in 1923 as a general printing business by Martha
What is an agency relationship : TNT Ltd has a paid up share capital of 1.2 million shares of Sh.20 each. The current market price per share is Sh.36. The company has no loan capital. Maintaina
Discuss resistance in consulting projects : Discuss resistance in consulting projects. What type of resistance are you likely to encounter in your present project? What is the best way to deal with this r
Greater employee engagement-better organizational : What steps would you take to help change the culture into one that encourages greater employee engagement and better organizational performance?
Democratic constitution of the republic of south africa : In 1993 South Africa established its first Democratic Constitution of the Republic of South Africa. The Bill of Right Act limited within this constitution parti
Why the organization may need to hire someone for position : Explain the factors considered to determine why the organization may need to hire someone for this position.

Reviews

Write a Review

HR Management Questions & Answers

  Face an international executive

From an executive's position, identify and explain at least three challenges and opportunities that might face an international executive over the next five years. Provide possible solutions of how the executive might address these issues in order..

  How will the employees be housed

For this homework assignment, you will develop a supporting human resource (HR) plan for an organizational strategy. In a paper of three to four pages.

  Describe the budgetary requirements for the project

The intended outcome for this assignment is to get commitment and buy-in from senior leadership/C-suite for your project. Remember this document is one in.

  Analyse the tools leaders use to help employees

Analyse the tools leaders use to help employees and themselves to cope with stress and burnout during COVID-19. The response must be typed.

  Optional benefits expected by employees

what types of optional benefits have come to be "expected" by employees, and why would it be a good idea for employers to offer them as part of their benefits package?

  Future viability of the organization

1. Provide an overview of your chosen organization and the problem/issue that challenges that organization. 2. Detail how the problem/issue affects (or can affect) the future viability of the organization.

  On an airplane you find yourself sitting next to the

on an airplane you find yourself sitting next to an executive whose goodwill is important to you either as a client or

  Understanding of ob

This assignment ends your journey in this course. Throughout the eight modules, you have been given the opportunity to learn, practice, and apply concepts and theory in new ways. Carefully consider where you were on the first day of the course and..

  Develop materials and opportunities to educate employees

Training and development prompts a change within an organization. The goal of training is to identify areas for improvement and develop materials.

  Disabilities in the workplaceas an hr manager what advice

disabilities in the workplaceas an hr manager what advice would you provide to a company you have researched to

  Hr management case scenario fair labor standards act

hr management case scenario fair labor standards act flsaresearch and identify the salient features of the fair labor

  Create an innovative environment in daycare or teachingwe

create an innovative environment in daycare or teachingwe have discussed numerous topics as it relates to creativity

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd