Solution to the agency conflict, Finance Basics

Assignment Help:

Solution to the Agency Conflict

The government can acquire the following actions to protect itself and its interests.

1. Acquire monitoring costs

E.g. the government incurs costs associated along with:

  • Statutory audit
  • Investigations of companies within Company Act
  • Back duty investigation costs to recover tax evaded in the previous
  • VAT refund audits

 

2. Lobbying for directorship representation

The government can lobby about directorship in companies that are deemed to be of strategic nature and significance to the entire economy or society.

3. Offering investment incentives

To encourage investment in provided areas and places, the government suggests investment incentives in type of capital allowance like laid down in the Second schedule of Cap 470.

4. Legislations

The government has given legal framework to govern the processes of the company and provide security to specific people in the society like regulation associated along with disclosure of information, salaries and minimum wages, environment security etc.

5. The government can uncalculated the sense and spirit of social responsibility on the behavior of the firm, that will eventually good for the firm in future.


Related Discussions:- Solution to the agency conflict

Ba 207, on may 1, counts, inc has a balance of $1000 in office supplie. dur...

on may 1, counts, inc has a balance of $1000 in office supplie. during may the company buys $500 more of the office supplies. on may 31 the company counts the supplies and finds 20

Calculate the price of a non-zero coupon bond, Question: A non-zero cou...

Question: A non-zero coupon bond carries a coupon rate of 8 percent and has 9 years until maturity. It sells at a yield to maturity of 6 percent. The par value of the bond is

Required Return.., Valuing Preferred Stock Gest, Inc has an issue of prefer...

Valuing Preferred Stock Gest, Inc has an issue of preferred stock outstanding that pays a $4.50 dividend every year in perpetuity. If this issue currently sells for for $79.85 per

Assumptions underlying percentage of sales method, Assumptions Underlying P...

Assumptions Underlying Percentage of Sales Method The fundamental supposition underlying the use of % of sales method is such, there is no inflation in the economy such is the

#title.ASF, Ask questioAustralian’s Speleological App Projectn #Minimum 100...

Ask questioAustralian’s Speleological App Projectn #Minimum 100 words accepted#

Dividend basis valuation, Dividend Basis Valuation Ownership of shares...

Dividend Basis Valuation Ownership of shares in entities - The owner to obtain a cash flow consisting of future dividends and the value of a share must correspond to the recen

Control of pattern formation, Control of Pattern Formation Limbs such...

Control of Pattern Formation Limbs such as all other organs have a pattern. What factor (or factors), environmental affects etc. are responsible for specific positioning of i

Dividend cover ratio, Dividend Cover Ratio Dividend cover = EPS/ DPS =...

Dividend Cover Ratio Dividend cover = EPS/ DPS = Earning to ordinary shares/Dividend paid       This signifies the number of times dividend can be paid from earnin

Write Your Message!

Captcha
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