...1. What do you understand by the term ‘Agency Problem’? The agent problem incur when the agent agree to work in favor of principle in return for incentives. Such agreement may incur huge cost for agent, thus the agent may begin to pursue its own agenda or ignore interest of principle which cause agency problem. For example, the management would like to borrow money to repurchase shares to lower the corporation’s share base and increase shareholder return. Stockholders will benefit. However, creditors will concern given the increase in debt that would affect future cash flow. 2. What role does asymmetric information play in producing this problem? Asymmetric information exists in a game when a player does not know some relevant fact about another player. Game of this nature is called incomplete information game. In the principle-game, principle wants to induce some actions by agent. If principle cannot observe the behavior of agent, the information problem is the hidden action. If principle cannot observe some relevant characteristic of agent ( e.g. skill-level, or firm’s cost) , the problem is the hidden information. Thus asymmetric information may cause agency problem. 3. Briefly explain the main series of events that led to the collapse of Storm Financial. Firstly, Storm Financial encourages their investors to buy stock by borrowing against their home and using cash to raise more money to invest. Actually all these investors don’t have sufficient income...
Words: 954 - Pages: 4
...Communicating With and Without Language By Lawrence A Bradshaw II COM101 Carol Gray, M.S. At Grand Canyon University Over the course of three days, a lot can happen. Things to be done, things that get done, and everything else in between. During that time, a person’s mood can either be swayed or swing from one direction to the next. There are a lot of factors that can influence those changes. Among the company the person keeps, health, time of day, and even appetite can greatly set the tone for ones perceivable communications: verbal or otherwise. While examining the past weekend, I found myself to fall victim to those aforementioned clauses. Here, we will take a moment to dissect the changes and how they affected communication. Friday: I start my day at 6am. I had not been feeling well, but I continue on with the help of my painkillers. At work, I communicate with a variety of different people. Whether in my office, or on the telephone, there is a vast assortment of personalities to contend with. As the day winds on, I feel myself bogging down. As I walk back and forth between the printer and my desk, the non verbal cues begin to speak louder than my words. People begin to ask “are you ok?” and “you don’t look so good”. Even simple communications with others becomes taxing. It was like watching drink: it starts off slowly, but then time takes its toll. By the end of the day, my interactions with others were kept to a bare minimum. By that, I meant...
Words: 599 - Pages: 3
...Mike Harris Research Paper #2 COM101-002 Professor: Bush Walker November 8, 2013 Media Conglomerate Ownership in the U.S. The United States is being greatly affected by conglomerate ownership of media properties in today's industry. A conglomerate is formed when a large company merges with separate and diverse small firms. By definition a media conglomerate is a large company or corporation that has merged with a number of different media outlets such as TV, radio, newspapers and Internet. Big companies have the tendency to expand by diversifying their holdings among different media products, never fully dominating a particular media industry. A decreasing number of organizations gaining control over an increasing amount of mass media, which defines media consolidation, leads to an oligopoly in the marketplace. Large companies create an oligopoly when only a handful of them dominate the industry and face little economic competition from small independent firms.[1] In 1983, a total of fifty corporations dominated most of the media industry. Through a series of mergers and acquisitions, that number shrunk to twenty-nine by 1987. Twenty-three companies had control of the industry by 1990 and in 1997 that number was ten. Presently, media ownership has been concentrated in the hands of only six extremely powerful media conglomerates.[2] The six corporations that control media collectively in the United States today are Comcast, The Walt Disney Company, CBS Corporation...
Words: 1589 - Pages: 7
...Jesse Jacquez Com101-052 Narrative writting 09-07-13 The Beach Everyone needs a break in life. Chores, school, and work are all daily duties that people want to escape from. The beach releases me from all my responsibilities, so I try to visit the beach every summer at least once. I feel that all work and no play can be socially unhealthy. There should always be time for letup. Everyone needs to get out of work mode once in a while. My cousins enjoy the beach as much as I do, and my cousins always invite me to tag along with them. When I visit the beach, I can personally say that I always create new memories. This past summer, I only got the chance to go to the beach one time, but I still had an amazing time at the beach. The day I went to the beach was perfect. The sun was high in the sky, and the clouds provided just enough shade. The weather for the whole day was beautiful. The sand on the beach was warm to the skin. It felt as if I was walking on a bunch of pillows. As soon as I sat on the beach I completely buried my feet in the sand. The waves where flowing in because of the boat traffic in the distance. The sound of the waves were almost putting me to sleep as I laid on the shore. Many people play recordings of wave sounds to put themselves asleep at night, but the real sound of waves in person is extremely move effective. The water, the sand, and the sky was just exceptional. I could not dream up a better day. The setting of the beach was just right. The...
Words: 1440 - Pages: 6
...greatest good should be taken into consideration. Promulgated by John Stuart Mill and Jeremy Bentham Act Utilitarianism Every act has an individual moral obligation. Rule Utilitarianism Apply utilitarianism to a set of rules that will benefit the majority. Kantian Ethics Intention based The categorical Imperative contains three maxims. Universality: You should only do something if you think it would be ok if everyone did it all the time. E.g. cheating in business, if everyone did it the economy would collapse. Every human should be treated as an end not a means to an end: So you can’t manipulate people to achieve an end. Contrasts to consequentialism which is based on ‘the greater good’. Means you cannot lie, (example about com101 being fav class) Act as if you were the moral authority of the universe: If any action that you undertake, repeated across the universe would create negative effects it is deemed unethical and you should not do it. Whistleblowing WB: Corporate governance codes require people to whistleblow on breaches of the codes. E.g. Enron: Positives: Required by corporate governance to report unethical business actions. Saves...
Words: 2581 - Pages: 11
...Accredited Tertiary Courses Listing 2012 Accredited Tertiary Courses Listing 2012 – as at 26 September 2012 1 2012 Accredited Undergraduate Courses AUSTRALIAN CAPITAL TERRITORY The Australian National University University of Canberra NEW SOUTH WALES Australian Catholic University Australian Institute of Higher Education Avondale College Charles Sturt University Kings Own Institute Macquarie University Southern Cross University Top Education Institute The University of New England The University of New South Wales The University of Newcastle The University of Sydney University of Technology, Sydney University of Western Sydney University of Wollongong Williams Business College NORTHERN TERRITORY Charles Darwin University QUEENSLAND Australian Catholic University Bond University Central Queensland University Christian Heritage College Griffith University James Cook University Queensland University of Technology The University of Queensland The University of Southern Queensland University of the Sunshine Coast SOUTH AUSTRALIA Flinders University Kaplan Business School The University of Adelaide University of South Australia Open Universities (conferred by Uni of SA) TASMANIA University of Tasmania VICTORIA Australian Catholic University Cambridge International College Carrick Higher Education Deakin University Holmes Institute Holmesglen Institute of TAFE La Trobe University Melbourne Institute of Technology Monash University Northern Melbourne Institute of TAFE RMIT...
Words: 16200 - Pages: 65