the second wave in the positive theory of accounting‚ focuses among other things on agency theory. What is agency theory? Elaborate the components of agency costs as described by Jensen & Meckling (1976). Answer: Agency theory is based upon the more general contracting theory that the most cost effective form of organizing economic activity is through a firm based structure. Jensen & Meckling describe agency theory is a contract under one party (the principle) engages another party (agent)
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Matthew Smith Agency Relationship Agency relationship is a consensual relationship between two parties‚ where one party‚ the principal‚ gives authority to another party‚ the agent‚ to act on behalf of and under the control of the principal to deal with a third party‚ thereby creating a fiduciary relationship. The law of agency allows one person to employ another to do his/her work‚ sell his/her goods‚ and acquire property on his/her own behalf. Although a principal-agent relationship can be
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How can the structure-agency debate help us to understand the attitudes towards police work and the actions of Captain Louis De Koster as a police officer? The structure-agency debate is a debate that asks one “to what extent are we shaped by social structure and to what extent do we exercise agency to determine our own biography?”. I am going to use this debate to understand the attitude and actions of Captain Louis De Koster as a police officer. Structure is the complex framework of social
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populations by ones’ self is difficult‚ how can one person possibly manage to take care of a person in all professional areas such as‚ social work‚ psychology‚ medical‚ and counseling? It is impossible. The best thing to do is to form a multi-disciplinary team. An MDT is the multi-disciplinary team of highly skilled professionals who professional backgrounds are all different. The team is formed around the client’s safety‚ needs‚ strengths and areas in which they need to improve in. The purpose of this
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Agency theory Agency theory identifies the agency relationship where one party‚ the principal‚ delegates work to another party‚ the agent. In the context of a corporation‚ the owners are the principal and the directors are the agent. This model of corporate governance and subsequent research focused on resolving conflicts of interest between corporate management and shareholders (Jensen and Meckling‚ 1976) and has largely adopted an agency theory approach. Key assumption is that the principals and
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TOPIC THREE: LAW OF AGENCY * Nature and Creation of an Agent * Duties of an Agent to his Principal * Duties of a Principal to his Agent * Termination of Agency Contract NATURE OF AGENCY What is an agency? Section 135 of Contract Act 1950: “Agency is the relationship which subsists between the principal and the agent who has been authorized to act for him or represent him in dealings with others.” There are two types of agency contracts:- 1. Contract between principal & agent
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Objective of study The objective is to investigate how principle-principle agency conflicts impact on the quality and effectiveness of corporate governance in European listed companies. Motivation for study Most of corporate governance research only reveals that corporate governance can solute the agency conflicts between management and shareholders which fails to identify principle-principle agency conflicts and their influences on corporate governance. Research question Whether
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Unit 1-Developing Effective Communication TASK 3 P4‚ M2‚ and D1 The strategies used in health and social care environments to overcome them and how which these barriers relate to effective communication and interpersonal interactions also review the strategies and evaluate to show how they could be improved and overcome them positively from my own experience in health and social care environments. Communication is key as it can reduce barriers as in healthcare environments there are language
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Unit 1 – Developing Effective Communication P1 Explain the role of effective communication and interpersonal interaction in a health and social care context. M1 Asses the role of effective communication and interpersonal in health and social care with reference to theories of communication. Context Formal Formal communication is important in a health and social care context. Formal communication shows respect for others and is an effective way of communicating when used. Formal
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Termination of agency.A contract of agency is a species of the general contract. As such‚ an agency may terminate in the same way as a contract is discharged except where the agency is irrevocable. Broadly speaking‚ an agency may be terminated either by the act of parties or by the operation of law. (a) Termination by act of parties: A contract of agency may come to an end by the act of the parties as follows: 1. By agreement: An agency is generally created by an agreement‚ it may also be terminated
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