C2 Stakeholder and socia responsibility

Question 1

Agency theory

Answer 1

to study the problems of motivations and control when a principal needs the help of an agent to carry out activities

Question 2

Agency relationship

Answer 2

IS a contract which one or more persons engage another person to perform some sos on their behalf that involves delegating some decision-making authority to the agent

Question 3

Agent

Answer 3

is usually a director who is interested in personal gain from their employment

Question 4

Principal

Answer 4

is usually a shareholder who is interested in wealth creation from their investment

Question 5

Agency monitoring systems steps

Answer 5

1. Request formation of committees
2. Employ consultants
   3 Increase numbers of NEDs
3. Attend AGM and question board

Question 6

Agency solution

Answer 6

The power that shareholders possess is the right to remove the directors from office. Agency costs might incur

Question 7

Stakeholders

Answer 7

is someone (ppl, groups, org) ) is affected by an entity and who has a corresponding claim.

Question 8

classifying stakeholders

Answer 8

ICE

Active or Passive