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One of the Most Challenging Issues in the Financial Management

question 67

Essay

One of the most challenging issues in the financial management of the enterprise is the possible separation of ownership from management resulting in the so-called principal agent problem. Define the agency problem, explain possible ways to alleviate the agency problem and discuss differences in across global markets.


Definitions:

Diplomonads

A group of flagellated protozoa, often parasites, with two nuclei and multiple flagella, found in anaerobic environments.

Waterborne Disease

Illnesses caused by infectious agents that are transmitted through contaminated water.

Colonial Green Algae

A group of green algae that live together in a colony, where individual cells are often connected by cytoplasmic bridges and exhibit little differentiation.

Volvox

A genus of green algae forming spherical colonies that live in fresh water and are capable of photosynthesis and sexual and asexual reproduction.

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