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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:
Partnership Definition -Partnership may be defined as a relationship between persons carrying on a business in common with a view of profits. In partnership business, two or mo
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Why are financial institutions heavily regulated, with specific focus on their ability to increase or reduce the money supply?
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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