In a typical corporation, who are the “principals” and who are the “agents”? What is the firm’s agency problem?
Answer to relevant QuestionsExecutive stock options are often seen as a simple and effective solution to the “other people’s money” problem that can occur when managers with little ownership interest mismanage firm investment opportunities. Can ...In the 1930s, economists Adolf A. Berle and Gardiner C. Means expressed concern that managers with relatively little ownership interest might demonstrate a suboptimal focus on transitory short-term profits rather than ...The Sarbanes-Oxley Act, named for sponsors Sen. Paul Sarbanes, D-Md., and Rep. Michael Oxley, R-Ohio, is the most sweeping law affecting corporations since the 1930s. It is having a dramatic effect on the costs companies pay ...What is the essential difference between public and private goods? Give some examples of each and some examples of goods and services that involve elements of both.The benefit-cost approach first surfaced in France during 1844. In this century, benefit-cost analysis has been widely used in the evaluation of river and harbor projects since as early as 1902. In the United States, the ...
Post your question