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Stewardship Accounting
Shareholders contribute capital that is provided to the directors that they employ and at the end of each accounting year render an explanation on the annual particular meeting of how the financial resources were operated. This is identified stewardship accounting.
1. In the light of the above shareholders are the principal though the arrangement is the agents.
2. Agency problem arises because of the divorce or divergence of interest among the principal and the agent. The conflict of interest between shareholders and management is identified agency problem in finance.
3. There a variety of nature of agency relationship in finance exemplified as follows like:
What is the different between?
Weighted Average Cost of Capital Weighted Average Cost of Capital or WACC is also called the overall or composite cost of capital. Since various capital components have diffe
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Overlaps and Conflicts Overlaps - whenever attaining ONE MEANS achieving the another Conflicts - whenever attaining ONE CANNOT permit the achievement of another.
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