There Are Several Types of Decision Makers Who Use Accounting

question 3

Essay

There are several types of decision makers who use accounting information.List five of these users of accounting information and give an example of a decision each would make.

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Definitions:

Principal-Agent Problem

This issue arises when there is a conflict of interest between a principal (who delegates authority) and an agent (who performs tasks), typically due to differing goals or asymmetrical information.

Hospitals

Healthcare institutions providing patient treatment with specialized staff and equipment.

United States

A country located in North America known for its significant economic, cultural, and military influence globally.

Principal-Agent Problem

A dilemma arising from conflicts of interest between a principal (e.g., an employer or shareholder) and an agent (e.g., an employee or manager) when the agent is motivated to act in his own best interests rather than those of the principal.