Solution to the agency conflict, Finance Basics

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.

Posted Date: 1/29/2013 1:53:45 AM | Location : United States







Related Discussions:- Solution to the agency conflict, Assignment Help, Ask Question on Solution to the agency conflict, Get Answer, Expert's Help, Solution to the agency conflict Discussions

Write discussion on Solution to the agency conflict
Your posts are moderated
Related Questions
A new pet shop wants to apportion their investment money $132,000 for advertising, building upgrades, and education in the ratio of 5:4:3. How much money does each category get app

Suggestion Regarding Credit Limit. Should It Be Approved Or Not, W, Finance

Financial Planning Project Instructions: You will serve as a financial advisor for your client to develop a financial plan. You can compile all the worksheets introduced in eac

Louis Futon Co. is currently an all-equity firm. The current market value of the company is $80 million. The corporate tax rate is 35%. What is the new value of the company if Loui

Executive Share Options Plans In a share option format, selected staff can be provided a number of share alternatives, each of which that provides the holder the right after a

Discuss business taxes and their importance in financial decisions

The following is the existing capital structure of Company XYZ Ltd. Ordinary shares at Shs.10 par 1,000,000 Retained 800,000 12% preference shares Shs.10 par 400,000 16% loan Shs.1


Leverage and Coverage Ratios   (The data for interest coverage are in I-Metrix's liquidity ratios section.  The others listed in this table are in the leverage ratios section