liability or responsibility

Table of Contents

Executive summery
This assessment is divided to five parts, each part relevant to the understanding of responsibility and liability in the company by the company management.
Introduction- will provide some information in the relation to the financial information. Why do we need it and how it has been develop across the years? It will also provide the base understanding of why we need the financial report and how he affects the responsibility or the liability of the company management.
Liability versus responsibility- will provide some basics understanding about the difference between Responsibility and liability and what is the relation between them?
Limited liability- I would try to answer some of the question as where it come from and why? How its effect the company, shareholders and stakeholders? What the resolute of it in our society?
Manager Responsibility as agent- What their responsibility? Whom they working for? To whom they report and need to benefit?
The assumption in the agent theory- Do we really know what going on in the company? Is the management of the company really doing what they suppose to do and inform us?
The myth and the management perception- is there any hidden information on the corporation report? What the manager trying to achieve when the author the information? The management still have responsibility for their action?
Conclusions- I will conclude all the information from the chapters above to how identify the hidden information in the corporate report. I also try to answer the question limited responsibility or limited liability in the respect to the management of the company.

Introduction
Company report why and who is for?
After the South Sea Bubble question start to be raise about the ability and motivation of the director of such a company to conduct the oversight of the company asset in an honest manner. This problem was one of the reasons for the development of financial