What is an agency relationship

Assignment Help Financial Management
Reference no: EM133197394 , Length: Word Count: 2 Pages

Assignment - Financial Management Paper

MINI CASE - Suppose you decide (as did Steve Jobs and Mark Zuckerberg) to start a company. Your product is a software platform that integrates a wide range of media devices, including laptop computers, desktop computers, digital video recorders, and cell phones. Your initial client base is the student body at your university. Once you have established your company and set up procedures for operating it, you plan to expand to other colleges in the area and eventually to go nationwide. At some point, hopefully sooner rather than later, you plan to go public with an IPO and then to buy a yacht and take off for the South Pacific to indulge in your passion for underwater photography. With these plans in mind, you need to answer for yourself, and potential investors, the following questions:

1. 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.

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

3. What is corporate governance? List five corporate governance provisions that are internal to a firm and are under its control.

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

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

Reference no: EM133197394

Questions Cloud

Discuss the pros and cons of self-disclosure : Discuss the pros and cons of self-disclosure and how it may benefit or hinder the therapeutic relationship between the clinician and client.
What air pollutants be responsible for the deterioration : What air pollutants might be responsible for the deterioration of the vehicle paint color, luster, and integrity? Carefully explain your answer.
Subjective attraction meets objective attractiveness : Wolf writes: "Meaning arises when subjective attraction meets objective attractiveness." Explain how this slogan captures her view. How might Wolf respond to Ta
Do a cost-benefit analysis showing social cost of recycling : Do a cost-benefit analysis showing the social cost of recycling( with and without subsidies) versus.
What is an agency relationship : 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
Discuss a type of evidence-based testing or screening : Discuss a type of evidence-based testing or screening in public health. Discuss whether the testing should be voluntary, opt-in or opt-out, or mandatory and why
Do you trust the water that comes out of your tap : Ashford University - Do you trust the water that comes out of your tap? Do you have any idea where your water comes from?
Write on US Cannabis Industry : Write on "US Cannabis Industry". It's for a CEO that's investing in lands to grow medical cannabis
Discuss why the issue or concern is an ethical challenge : Describe social justice issue or concern and the people and organization related to the issue. Discuss why the issue or concern is an ethical challenge.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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!

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