Financial management
This query is : Resolved
29 June 2015
What is meant by agency problem? Explain the role of finance manager in an MNC.
29 June 2015
An agent is supposed to act on behalf of and in the best interest of the principal. Agency problem refers to a situation where the personal interest of the agent clashes with the interest of the person(s) on whose behalf he is supposed to act. For example, a CEO has to decide on the demerger of a company and knows that this will unlock the value of the assets of the company and benefit the shareholders. At the same time demerging the company means that the company will be split up and he will lose control of some of the divisions of the company. If he is being paid commission as a % of the net profit of the entire company then he knows that the profit of the demerged company of which he is the CEO will be much lower and his commission will decrease. Thus, his own interest goes against the best interest of the shareholders. This is an agency problem.
Role of finance manager is fairly simple can be found in the ICAI module.
Role of finance manager is fairly simple can be found in the ICAI module.
30 June 2015
Agree with the opinion of expert.
Finance manager is responsible for various things statutory or otherwise like Tax compliances and accouting etc.
Thanks
Finance manager is responsible for various things statutory or otherwise like Tax compliances and accouting etc.
Thanks
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- ITR 2 Short Term gain & Long term gain
- Off Market debit and credit transaction
- Reporting Income under Section 44ADA
- Itr 1 processing
- Short Term Capital gain on shares bought and sold after 2018 onwards
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Bank Accounts in Balance Sheet for ITR 3
- ITR 1: Details for showing Exempt Income
- ITR validation error - Balance sheet is not filled
- ITR returnFY25-26
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
