Solution to the agency conflict, Finance Basics

Assignment Help:

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.


Related Discussions:- Solution to the agency conflict

Non-linear Break Even Analysis, International Data Systems information on r...

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

Tom and Martha Holt Case Study., Which of the following retirement plan alt...

Which of the following retirement plan alternatives would allow Tom the greatest deductible contribution while providing him with only a small cash flow commitment each year based

Draw a graph and use the supply and demand analysis, If banks expect an unu...

If banks expect an unusually large increase in withdraws from checking deposit accounts in the near future, what would happen to the federal funds rate, borrowed reserves and nonbo

Required Return.., Valuing Preferred Stock Gest, Inc has an issue of prefer...

Valuing Preferred Stock Gest, Inc has an issue of preferred stock outstanding that pays a $4.50 dividend every year in perpetuity. If this issue currently sells for for $79.85 per

policies decided by the proprietor, Some of the policies decided by the pr...

Some of the policies decided by the proprietor are: 1) Time of operating the business 2) Promotion through advertising or special offers 3) Dealing with suppliers and cus

Unbiased Expectations Theory, What is the one-year Treasury security rate o...

What is the one-year Treasury security rate of 1R1? For 1R3=11%, E(2r1)= 4% and E(3r1)=5%

Venture capital, Venture Capital Venture capital is a form of investme...

Venture Capital Venture capital is a form of investment in new small risky enterprises utilized to get them started via specialists called venture capitalists. Venture capital

What are the types of financial assets, What are the types of financial ass...

What are the types of financial assets? Types of Financial Assets: a. Loans b. Bank Deposits c. Stocks A share of ownership within a company d. Bonds A promis

Factors to increasing the profitability of a business, Factors contribute t...

Factors contribute to increasing the profitability of a business Several other factors contribute to increasing the profitability of a business. For companies that are highly d

Explain the framework put forward by the basel committee, Question 1: a...

Question 1: a) Explain the framework put forward by the Basel Committee to ensure that banks and supervisors give appropriate attention to the second (supervisory review) and

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