Agency Problem Essay 2

1. Agency Problem Agency problem is the situation in which agents of an cheek (e.g. the steering) use their authority for their own benefit rather than that of the principals (e.g. the stockholders). The office problem also refers to simple disagreement between agents and principals. For example, a publicly-traded comp boths board of directors may disagree with shareholders on how to go around invest the companys assets. It especially applies when the board wishes to invest in securities that would favor board members outside interests. Also, the main concern to the shareholder is to maximize their wealth through the company and its affiliates and subsidiaries. However, some(prenominal)times the management deal with some issues in a way that acquire their interests regardless if it is in line of the shareholder interests. 2. Introduction Centralization is the address by which the activities of an organization, particularly those regarding planning and decision-making become concentrated at heart a particular location and/or group. Now a day MNC went through centralizing the decision making and some functions in a central region management by which they can standardize the processes and procedures of taking the decision and eliminate any expected deviations.

All subsidiaries should follow the track of the HQ to tell achieving the main objectives. However, some management get away from such(prenominal) track and follow the way by which it would be unaccented to follow, resist the change or having their own agenda. 3. IBM WTC profile | | | outside(a) Business Machines Corporation (IBM) was founded in 1911 and is based in Armonk, unseasoned York, The company was formerly known as Computing-Tabulating-Recording Co. and changed its name to international Business Machines Corporation in 1924. IBM provides information technology (IT) products and function worldwide. Its Global Technology Services segment provides IT infrastructure and product line process services, including strategic... If you want to get a full essay, sound out it on our website: Ordercustompaper.com

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