Discuss the following proposition in the context of the professional sporting clubs in this case (you may choose to focus upon only the Essendon Football Club): ‘Principal-Agent problems are caused by insufficient oversight by company directors.’ Corporate Governance is a complex field that started to develop very quickly this last decade. The collapse of international firms‚ the financial crisis‚ the international scandals‚ the pressure from the governments and non-profit organizations… are all
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Principal-agent problem is a particular game-theoretic description of a situation. There is a player called a principal‚ and one or more other players called agents with utility functions that are in some sense different from the principal’s. The principal can act more effectively through the agents than directly‚ and must construct incentive schemes to get them to behave at least partly according to the principal’s interests. The principal-agent problem is that of designing
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basic purposes‚ while other goods and services that have high utility to the ordinary citizens are in short supply or non-existent. For example‚ basic commodities such as pipe-borne water‚ regular electricity‚ effective health care‚ ands others. 3. Monopoly: Another defect of capitalism pertains to monopoly‚ this is a situation whereby there is only one producer of a commodity in a region or locality. For example‚ an employer may be the only purchaser in a locality‚ and if this happens‚ he would
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The Principal Agent-Theory as a base for the organization of company innovation process There are many settings in which one economic actor (the principal) delegates authority and/or responsibilities to an agent to act on his behalf. The primary reason for doing so is that the agent has an advantage in terms of expertise or information. This informational advantage‚ or information asymmetry‚ poses a problem for the principal—how can the principal be sure that the agent has in fact acted in her
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lCompany Profile: Company Name: Creative Insurgence Pte Ltd Company Establishment: founded in year 2005 Company Location: Head Quarters located at 69 Dunlop Street Creative Insurgence‚ are an events and show production company that specializes in conceptualizing‚ planning and executing both corporate as well as lifestyle events. They work with various partners such as credit cards‚ brands and venues to maximize the return-on-investment by our client(s). They are experts in handling B2C
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THE NATURE OF AGENCY RELATIONSHIP The need to appoint another person to perform one act or another on one’s behalf assumes greater proportion daily. This is so because of the rapid economic developments that has taken place in the recent years. A party may want to do many things but because of lack of time or expertise‚ he is compelled to appoint another person to act on his behalf and whatever that other person does will be binding on him. The question is: ‘Who is an agent?’ An agent is one who
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Review Problems#3 Question-1 Mark Goldsmith ’s broker has shown him two bonds. Each has a maturity of 5 years‚ a par value of $1‚000‚ and a yield to maturity of 12%. Bond A has a coupon interest rate of 6% paid annually. Bond B has a coupon interest rate of 14% paid annually. a. Calculate the selling price for each of the bonds. ANSWER: b. Mark has $20‚000 to invest. Judging on the basis of the price of the bonds‚ how many of either one could Mark purchase if he were to choose it over
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When one thinks of human trafficking and abolishing it forever‚ it is quite difficult to imagine someone who would be against trying to stop this heinous act. I will endeavor to show who these organizations are and how they oppose the law’s‚ government institutions and NGO’s trying to abolish human trafficking. I will also expose the myths and fallacies of human trafficking in an attempt to bring honesty and truth to this very disturbing subject. In view of the plight of those trafficked‚ something
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Agency Theory Agency theory is widely used in different companies‚ businesses and organizations Agency Theory is basically about the association between the boss‚ which is the Principal‚ and the worker‚ which is the Agent. A good example for an application of the Agency Theory would be sharecropping‚ where the Principal is the landowner and the Agent is the farmer. Another example for the Agency Theory in a more familiar organizational structure would be the relationship between a company’s shareholders
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Introduction Nokia Phones originated from a small town in Southwestern‚Finland and began from a small paper mill on the banks of the Nokianvirta river‚set up by Fredrik Idestam in 1865.It was 1968 that the Nokia Corporation started in the Mobile Nokia Phone business after spending more than a century operating five different business field as stated in the time line below (Barr G‚ 2009) : Paper Mill‚ 1865 Finnish Rubber‚ 1898 Cable Electronics Forestry Power Generation 1912-1967 By year
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