Contracting cost - agency costs, Finance Basics

Contracting Cost - Agency Costs

These are costs acquired in devising the contract between the shareholders and managers.

The contract is drawn to ensure management act in the excellent interest of shareholders and the shareholders conversely undertake to compensate the management with their effort.

Examples of the costs are as:

  • Negotiation fees
  • The contracts fee the legal costs of drawing.
  • The costs of background the performance standard.
Posted Date: 1/29/2013 1:37:33 AM | Location : United States







Related Discussions:- Contracting cost - agency costs, Assignment Help, Ask Question on Contracting cost - agency costs, Get Answer, Expert's Help, Contracting cost - agency costs Discussions

Write discussion on Contracting cost - agency costs
Your posts are moderated
Related Questions
International Data Systems information on revenue and costs is only relevant up to a sales volume of 100,000 units. After 100,000 units, the market becomes saturated and the price

where can I get money and how can I manage it

Advantage of Leasing an Asset 1. The company has the choice to purchase assets on the expiry of the lease period at that time it will identify the viability of the asset

Question 1: (a) What do you meant by the term ‘Life Insurance Contract'? (b) Many people prefer to choose Single life policies compared to Joint life policies. Why is t

1. Find the price of the following bonds. They are all risk-free, and the risk-free rate is 10%. (a) A fifteen-year zero coupon bond with face value $1,000. (b) A three year

Suppose that two players are playing the following game.  Player A can choose either Top or Bottom, and Player B can choose either Left or Right.  The payoffs are given in the foll

Volpe Corporation produces class rings to sell to college and high school students. These rings sell for $75 each, and cost $30 each to produce. Volpe Corporation has fixed costs o

Working Capital a) Working capital or called gross working capital also, refers as current assets. b) Net working capital refers to current assets minus current liabilities

should be provied on a centralised or a decentralised basic?

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