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The Appropriate Financial Structure Can Be Determined from a Range

question 103

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The appropriate financial structure can be determined from a range of different scenarios created by making small changes in selected value drivers.


Definitions:

Agency by Ratification

This occurs when a principal approves and accepts the actions of someone who acted without authority, thereby giving those actions legitimacy and creating an agency relationship retrospectively.

Doctrine

A belief or set of beliefs held and taught by an organization, especially a religious or political one.

Agency Relationship

A legal relationship in which one party, the agent, is authorized to act on behalf of another party, the principal, in conducting business transactions.

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