In Large corporations, especially those whose securities are publicly traded (PLCs) there is distinct separation between
Posted: Sun Jun 05, 2022 6:56 am
In Large corporations, especially those whose securities are
publicly traded (PLCs) there is distinct separation between
ownership and management. The shareholders are the principal (
possess equity interest) and management are the agent (undertake
the role of stewardship). Related to the management is the Agency
Problem. Clearly explain the key issues or challenges that the
Agency Problem create within Public Limited Companies( PLCs). ( 8
marks)
publicly traded (PLCs) there is distinct separation between
ownership and management. The shareholders are the principal (
possess equity interest) and management are the agent (undertake
the role of stewardship). Related to the management is the Agency
Problem. Clearly explain the key issues or challenges that the
Agency Problem create within Public Limited Companies( PLCs). ( 8
marks)