Acc501 GDB no 1 Fall 2012 online Solution written update

Acc501 GDB no 1 Fall 2012 online Solution written update 

Discussion Question:

Shareholders are considered as the owners of a corporation so "wealth maximization of the shareholders" remains one of the main goals of the corporation. Even so, sometimes there may develop a situation when managers pursue their own goals at the expense of shareholders' goals. This situation of conflict is termed as "Agency Problem". In this particular situation, agents (managers) emphasize only those aspects of performance that are related to their own interests by ignoring the interests of principals (shareholders). In order to align the managers’ goals along with the shareholders’ goals, the corporation has to incur some agency costs. You are required to discuss the techniques of aligning the "agent-principal" goals for which the agency costs are generally incurred.

Guidelines for Preparation:

For acquiring the relevant knowledge, do not rely only on handouts but also study the recommended/reference books and watch the course video lectures, which can be viewed through the VU open coursewarewebsite http://ocw.vu.edu.pk

Important Instructions:

Your discussion must be based on logical facts.

The Discussion Board will open and close at above specified date and time. Please note that no grace day or extra time will be given for posting comments on Discussion Board.

Use the font style “Times New Roman” and font size “12”.

Your answer should be relevant to the topic i.e. clear and concise.

Do not copy or exchange your answer with other students. Two identical / copied comments will be marked Zero (0) and may damage your grade in the course.

Books, websites and other reading material may be consulted before posting your comments; but copying or reproducing the text from books, websites and other reading materials is strictly prohibited. Such comments will be marked as Zero (0).

You should post your comments under the link of GDB, not on the Moderated Discussion Board (MDB). Both will run parallel to each other during the time specified above. Therefore, due care will be needed.

Obnoxious or ignoble answer should be strictly avoided.

You cannot participate in the discussion after the due date via email.

Questions / queries related to the content of the Discussion Board, which may be posted by the students on MDB or via e-mail, will not be replied till the due date of Discussion Board is over.

For planning your semester activities in an organized manner, you are advised to view schedule of upcoming Assignments, Quizzes and GDBs in the overview tab of the course website on VU-LMS.

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