Attempts $$ Keep the Highest $/5$

$6.$ Agency problems

Consider the following scenario and determine whether an agency conflict exists:

Yakov and Ans equally own and manage A New Beginning $($ANB$),$ a store that sells preowned dothing and furniture, Yakov is responsible for ANB's back$-$cflice activities, and Ana staffs the store and makes delveries to customers. Both have equal decision$-$making authority and, under the terms of their partnership agroement, both are prohibuted from malang personal purchases using company funds without prior approval of the other partner. Yakov, without Ana's knowledge, used the company's bank accourt recently to purchase a new sports car. Yakov has acknowledged that the car will not be used to support the busness.

Tips

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Tips

Is this a potential agency confict between Yakov and Ana?

ves; it should have been Na who purchased the car.

Wes: Vakou is musappropristing some of Arra's wealth by trilaterally purchasing a nonbusiness asset using ANB's funds.

No: Yakov and Ans are both outhorized to spend ANB's money, so no conflat of interest can occur,

No: Yakov and Ans co$-$own and co$-$manage ANB and have a partnership ayreement that makes them equal, so an agency conflict cannot east.

Consider the following scenario and determine whether an agency conflict exists:

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