Here is the synopsis of our sample research paper on Accounting Questions. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 8 page paper answers several questions asked by the student. The paper first looks at agency costs within a company and the use of funds to buy an unrelated company or to be used to motivate staff. The second part of the paper looks at issues regarding cost centres, profit centres and transfer costs. The bibliography cites 3 sources.
Page Count:
8 pages (~225 words per page)
File: TS14_TEquest8.rtf
Buy This Term Paper »
Unformatted sample text from the term paper:
minimum as this increases the retained earning and as such the equity within the company. One influence may be seen as the CEO and the amount of investment that is
held within the company. The holding of a large proportion of the CEOs wealth tied up in the company is often seen as a good, the CEO has a
vested interest in seeing the company perform as it is their money as well as the shareholders. However, this aspect of interest may be seen as less important than the
overall percentage of the equity that they hold as this may cause agency conflicts. This is the potential for conflict to arise where the interests of the shareholders and the
interests of the management (the agent) may diverge. Agency costs may arise in both direct sand indirect ways, the conflict may arise due to waterfall spending. This may be seen
when although the company is owned by the shareholders, they do not directly own the company assets or a share in them. These are owned by the company, which has
its own legal identity and the CEO will have control of these assets. In terms of agency costs, if the CEO owns a large share of the stock this gives
them a stronger ability to disregard other shareholders and require less backing on issues that are voted on at the general meetings. They have control and run, as such their
large shareholding increases. Other agency costs include the auditing costs. Theroefre, the share of the company is more important to reducing agency costs than the level of the CEOs wealth
that is invested in the company. b) The management of Media Midwest are arguing that with the ability to transfer services internally, the purchase of a fast food chain
...