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Please provide the references for the examples. Question: (a) What is meant by the term agency cost? Discuss a real incident where the executives or
Please provide the references for the examples.
Question: (a) What is meant by the term agency cost? Discuss a real incident where the executives or managers of a business grganisation may have undertaken some actions that you feel have led to agency costs. Then, discuss any two measures that can be adopted to avoid similar agency costs. [2 + 3 + 5 = 10 marks] (b) Does agency cost occur in all 3 legal forms of businesses (.e., sole-trader, partnership, and company)? Why or why not? Discuss. [4 marks) (c) We have covered the three main roles of financial managers (capital budgeting, financing decision and working capital management). Please have a thought on these roles. How can agency costs occur during a manager undertaking each of these roles? Can you give any examples? (6 marks)
Please provide the references for the examples.
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