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Remote session ACCA CBE 1-5 March 2021 - Please read advice/recommendations from ACCA

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Managers

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA BT – FIA FBT › Managers

  • This topic has 2 replies, 2 voices, and was last updated 1 month ago by Ken Garrett.
Viewing 3 posts - 1 through 3 (of 3 total)
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    Posts
  • January 17, 2021 at 6:36 pm #606281
    root1999
    • Topics: 6
    • Replies: 2
    • ☆

    Riley and Malena are managers at SAWR Co Since a recent take over bid they have been seeking to award themselves better terms and conditions of service and behaving in ways that are not favourable to shareholders of the company
    Which of the following theories describes the situation above?
    A)Agency
    B)Governance
    C)Stewardship
    D)Stakeholder
    is it Agency or not?Can you help me tu understand fully this situation?

    January 17, 2021 at 7:58 pm #606289
    Ken Garrett
    Keymaster
    • Topics: 9
    • Replies: 9039
    • ☆☆☆☆☆

    No, I can’t until you address my questions to your earlier post.

    January 19, 2021 at 10:13 am #607135
    Ken Garrett
    Keymaster
    • Topics: 9
    • Replies: 9039
    • ☆☆☆☆☆

    It’s not too clear to me and it is a poor question.

    Agency is the idea that an agent should put the principal first. Whether they do or no is another matter. Here they are not behaving as they should so there is an agency issue

    Governance is the way companies are controlled and managed. So, here, why has this not been stopped? Good governance should prevent this.

    Stewardship is the responsibility to take good care of resources – presumably they are being wasted here.

    Stakeholders: not very relevant here

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