ratings affect the capital structure of a firm Credit ratings is the assessment of the credit worthiness of a firm based on historyof borrowing and repayment. Credit rating is the credit worthiness of a debtor. The debtors ability to pay back the debt. Companies with high rating (AAA) have a good market reputation and logically would avoid not being in favor of more debt in capital structure to save them from any adverse circumstances. High credit ratings expose a firm to obtain higher external
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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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Commercial Law Agency An agent is determined by law. Determined by the legal implications of what the person does. Must be acting for a principal cannot stand alone. (a)Agent has the legal authority to bind or incur liability for which the principal can be responsible. The primary role of an agent is to negotiate or conclude contracts on behalf of a principal. Actions are treated like that of the principal. Consent can be determined by the Court. (b)Agent is a person who is recognized by law as
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Objectives of Firms Introduction to Business Objectives Standard theory assumes that businesses have sufficient information‚ market power and (importantly) motivation to set prices for their products that maximise profits This assumption is now heavily criticised by economists who have studied the organisation and objectives of modern-day corporations. Not only do most businesses frequently move away from pure profit-seeking behaviour‚ many are organised and operated in a way where profit is not the
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Criminal Behavior Theories There are three major categories that are used to categorize criminal behavior. These are psychological theories‚ sociological theories and biological theories. Though each of them has a profound effect on how criminals behave‚ it is at times impossible to differentiate the three. This paper analyses the strengths and weaknesses of these three broad categories and gives a view of which one is the most applicable to the cause of modern criminal behavior. Psychological
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Chapter 6 Cost-Volume-Profit Relationships Solutions to Questions 6-1 The contribution margin (CM) ratio is the ratio of the total contribution margin to total sales revenue. It can be used in a variety of ways. For example‚ the change in total contribution margin from a given change in total sales revenue can be estimated by multiplying the change in total sales revenue by the CM ratio. If fixed costs do not change‚ then a dollar increase in contribution margin will result in a dollar
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Toward a knowledge-based theory of the firm ROBERT M. GRANT ‚ 1996‚ SMJ Presentation of the article The different theories of the firm when applied to the field of strategic management help explain firm performance and the determinants of strategic choice from different perspectives. The knowledge-based view‚ through its focus upon knowledge as the most strategically important firm resource‚ is seen here as an extension of the resource-based view. The issues with which the KBV concerns itself
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Ownership Aristotle and Sarte bath have two different views on ownership. Aristotle’s view of ownership is tangible‚ to own something does not always mean to have a physical object‚ like a book. However‚ Sarte’s view of ownership is intangible‚ to own an inedible object‚ such as a theory of idea. Ownership is both tangible and intangible. Sarte’s view of ownership appeals to ethics‚ a branch of knowledge that deals with morals and principles. Since Sarte’s perspective of ownership is intangible
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individual firms‚ the consumption decisions of individual consumers‚ and prices of particular goods and services. Although macroeconomic issues and policies command much attention in the media‚ the microeconomics of the economy also are important and often are of more direct application to the day-to-day problems facing the manager. Microeconomics focuses on the behaviour of individual actors on the economic stage: firms and individuals and their interaction in the markets. Managerial Economics should
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Sociology Central The Mass Media 2. Ownership and Control Sociology Central The Mass Media www.sociology.org.uk Media Ownership Private: Companies are State: The BBC‚ for example‚ is owned by individuals‚ families‚ shareholders and so forth. state owned; it is funded by the taxpayer and doesn ’t have private owners or shareholders. There are different types of state ownership around the world. In China‚ for example‚ the government directly controls media content
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