Monitoring costs - agency costs, Finance Basics

Assignment Help:

Monitoring Costs - Agency Costs

This is incurred to prevent undesirable managerial actions. They are meant to ensure that both parties live to the spirit of agency contract. They ensure that management employs the financial resources of the shareholders with no undue transfer to themselves.

Examples are:

  • External audit fees
  • Legal compliance expenses like example of Preparation of
  • Financial statement according to international accounting standards, company law, capital market authority necessity, stock exchange system or rule etc.
  • Disclosure expenses and financial reporting
  • Investigation fees particularly whereas the investigation is instituted via the shareholders.
  • Cost of instituting a tight internal control system or ICS.

Related Discussions:- Monitoring costs - agency costs

Characteristics of sole proprietorship, Characteristics of sole proprietors...

Characteristics of sole proprietorship The main characteristics of sole proprietorships are as follows: 1) Ownership- The ownership of the business unit is by one person.

Calculate the lump sum, Your daughter is a beginning freshman in high schoo...

Your daughter is a beginning freshman in high school. By the time she enters her freshman year in college, you would like to have savings accumulated to pay her tuition for her nex

Required barrels of water per day, In the present case, we need to take a d...

In the present case, we need to take a decision about implementing one of the available two options, based on various factors. The available two options are either to complete a se

Finance Project , Five years ago, you bought a house for $151,000, with a d...

Five years ago, you bought a house for $151,000, with a down payment of $30,000, which meant you took out a loan for $121,000. Your interest rate was 5.75% fixed. You would like to

Terms used in capital market authority, Terms used in Capital Market Author...

Terms used in Capital Market Authority 1. ACCOUNTS fourteen (14) days durations into that the stock exchange trading calendar is divided. 2. ACCOUNTS DAY - Sixth or sev

Setting a reorder point - rop, Setting a Reorder Point - ROP  Once the...

Setting a Reorder Point - ROP  Once the order quantity has been determined, the next question to be settled is when to place the order. If an order is released and it takes th

Materials management - supply chain management, Materials Management - Supp...

Materials Management - Supply Chain Management Materials management was once a task undertaken without the assistance of computers. Today it is unthinkable as the speed of cal

Example of earnings yield valuation, Example of Earnings Yield Valuation ...

Example of Earnings Yield Valuation Estimated maintainable earnings are £240,000 per annum; rate of return required is 25 percent. Calculate the value of the business. V

Solution to the agency conflict, Solution to the Agency Conflict The g...

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 gover

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd