Question Tag: Agency Conflicts

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CSME – May 2017 – L2 – SC – Q6 – Ethics in Business

Explain agency problems and Tucker's model to guide ethical decisions for accountants.

a. Agency problems and conflicts are common in all organisations.
Required:
Explain the concept of agency problems and discuss FIVE types of agency conflicts that might exist in an organisation. (8 Marks)

b. Tucker‟s Five Question Model can be employed in training new professional accountants in ethics.
Required:
Explain the issues covered by the Tucker‟s Five Question Model. (7 Marks)

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BMF – May 2018 – L1 – SB – Q2c – Basics of Business Finance and Financial Markets

Explain briefly THREE of these remedies

Agency conflicts are the differences in the interests of a company’s owners and managers. However, several remedies have been recommended to lessen this age-long managerial problem.
Explain briefly THREE of these remedies

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SCS – Dec 2022 – L3 – Q3 – Strategy, stakeholders, and mission

Explanation of potential agency conflicts minimised by the involvement of a shareholder in management.

Mr. Asare Blankson, the sole shareholder, has been actively involved in the management of the company by serving as the CEO for many years and currently as the Board Chairman. This could minimise potential agency conflicts associated with the separation of the shareholder(s) from management as suggested by the Agency Theory of Corporate Governance.

Required:

Explain FIVE (5) potential agency conflicts that could be minimised or avoided by Mr. Asare Blankson’s involvement in the management of the company as a former CEO and the current Board Chairman. (10 marks)

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BMF – Nov 2021 – L1 – SA – Q4 – The Role of Professional Accountants in Business and Society

Question about identifying which scenario is not an agency conflict.

Which of the following is NOT an example of agency conflicts?

A. Moral hazard
B. Risk aversion
C. Earnings retention
D. Maturity transformation
E. Effort level

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CSME – May 2017 – L2 – SC – Q6 – Ethics in Business

Explain agency problems and Tucker's model to guide ethical decisions for accountants.

a. Agency problems and conflicts are common in all organisations.
Required:
Explain the concept of agency problems and discuss FIVE types of agency conflicts that might exist in an organisation. (8 Marks)

b. Tucker‟s Five Question Model can be employed in training new professional accountants in ethics.
Required:
Explain the issues covered by the Tucker‟s Five Question Model. (7 Marks)

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BMF – May 2018 – L1 – SB – Q2c – Basics of Business Finance and Financial Markets

Explain briefly THREE of these remedies

Agency conflicts are the differences in the interests of a company’s owners and managers. However, several remedies have been recommended to lessen this age-long managerial problem.
Explain briefly THREE of these remedies

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You're reporting an error for "BMF – May 2018 – L1 – SB – Q2c – Basics of Business Finance and Financial Markets"

SCS – Dec 2022 – L3 – Q3 – Strategy, stakeholders, and mission

Explanation of potential agency conflicts minimised by the involvement of a shareholder in management.

Mr. Asare Blankson, the sole shareholder, has been actively involved in the management of the company by serving as the CEO for many years and currently as the Board Chairman. This could minimise potential agency conflicts associated with the separation of the shareholder(s) from management as suggested by the Agency Theory of Corporate Governance.

Required:

Explain FIVE (5) potential agency conflicts that could be minimised or avoided by Mr. Asare Blankson’s involvement in the management of the company as a former CEO and the current Board Chairman. (10 marks)

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BMF – Nov 2021 – L1 – SA – Q4 – The Role of Professional Accountants in Business and Society

Question about identifying which scenario is not an agency conflict.

Which of the following is NOT an example of agency conflicts?

A. Moral hazard
B. Risk aversion
C. Earnings retention
D. Maturity transformation
E. Effort level

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