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Selected transactions completed by a corporation are described below. Indicate the effects of each transaction on assets, liabilities, and stockholders' equity by inserting "+" for increase and "-" for decrease in the appropriate columns at the right. If appropriate, you may insert more than one symbol in a column.
Agency Problem
A conflict of interest between the principals, such as shareholders, and the agents managing the company, like executives or managers.
Empire Building
A strategy where a company's executives expand their organization's size and operations, often to increase power and control, regardless of shareholder benefit.
Corporate Jets
Private aircraft owned or leased by corporations for the purpose of transporting executives and employees, often to support business operations more efficiently.
Real Assets
Physical or tangible assets such as real estate, commodities, or natural resources that have intrinsic value.
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