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
Asset: - An asset stands for an item of value owned and controlled by an organization which can generate revenue for the organization or can help in generating the organization re

Looking at the income statement, balance sheet and cash flow statement of the company and relating it with the non financial factors, I have the important observations as below:-


Dow theory elliot wave theory

Describe the structure of financial systems with financial markets, securities and financial intermediaries. By a structural point of view a financial system can be considered

What are the types of Money and Bank Regulations? Types of Money : a. Commodity money b. A commodity-backed money c. Fiat money Bank Regulations: a. Deposit i

I need report on Corporate Finance. Do you provide help in topic Corporate Finance? I need expert's assistance to solve my college assignment. Please suggest if it works for me.


DO YOU HAVE A SAMPLE BALANCE SHEET

what makes a preference shares a hybrid?