Please respond to the below answer to the questions:

Topic 2

Explain what agency theory refers to, discuss some examples and relevant legislation.

Answer: Agency Theory is a principle that is used to help disagreements between business principles and their agents. Some examples of this principle could be employers vs. employees or coach vs. player. After figuring out the differences majority of the time an agreement will come in either a contract or a mutual agreement. majority of the time this principle is used when two different parties have a misunderstanding that can easily be resolved.

Topic 4

What are the four statements that contained in most annual reports? Define each one of them

Answer:

Balance sheet: A statement that shows assets and liabilities from a certain start time to a certain end time. A balance sheet is a simpler way to look at all of your business's assets.

Income statement: A statement that shows the companies income and where they spend their money

Cash flow statement: A statement that shows where the money goes internally and externally for a company. Also shows investment data.

Statement of stockholders' equity: Shows the retained earnings, dividends as well as net income. Shows the remaining assets left in the company after a certain amount of time.