Reference no: EM132809287
Mini Case
Suppose you decide (as did Steve Jobs and Mark Zuckerberg) to start a company. Your product is a software platform that integrates a wide range of media devices, including laptop computers, desktop computers, digital video recorders, and cell phones. Your initial client base is the student body at your university. Once you have established your company and set up procedures for operating it, you plan to expand to other colleges in the area and eventually to go nationwide. At some point, hopefully sooner rather than later, you plan to go public with an IPO and then to buy a yacht and take off for the South Pacific to indulge in your passion for underwater photography. With these plans in mind, you need to answer for yourself, and potential investors, the following questions:
What is an agency relationship? When you first begin operations, assuming you are the only employee and only your money is invested in the business, would any agency conflicts exist? Explain your answer.
Suppose your company raises funds from outside lenders. What type of agency costs might occur? How might lenders mitigate the agency costs?
What is corporate governance? List five corporate governance provisions that are internal to a firm and are under its control.
Briefly describe the use of stock options in a compensation plan. What are some potential problems with stock options as a form of compensation?
Briefly explain how regulatory agencies and legal systems affect corporate governance.
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Discuss the main differences between paid time off practices
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Discuss three inter-connected disney strategic hr practices
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What is wacc for best baller company
: The Best Baller Company has $6 billion of common stock and $12 billion of debt. If the company's tax rate is 35%, what is its WACC?
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Description of an airline reservation clerk duties
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How might lenders mitigate the agency costs
: Suppose your company raises funds from outside lenders. What type of agency costs might occur? How might lenders mitigate the agency costs?
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What was the break-even point for company b
: Company B reported sales of $640,000, a contribution margin of $160,000, and an operating loss of $40,000. what was the break-even point?
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Explain fixed and flexible budgeting
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Destroying a religious book be considered sacrilegious
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Which is the correct order an accountant should consider
: Which is the correct order an accountant should consider each when facing a difficult decision? Public, Client, Employer, Professional, Individual.
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