Limited Number of Parking Spaces at School Assignment

Limited Number of Parking Spaces at School - Assignment Example With facilitators and students competing for a space to park, there is a need for changes that will counter this issue (Will 250). Major strategies and steps are needed to ensure proper registration for parking at the start of every school year. Students should be provided with permits for parking, which will allow them the right to a parking space. By doing this, a record is provided that enables the administration to budget for the spaces available. In this light, expansions are required to cater for everyone. With the increase in students’ car ownership, there is a need to adjust the regulations set for parking spaces. For instance, use of adjacent land can be adapted in cases where schools have limited land resources. However, this will require the provision for residential parking. In addition, regulations can be set where there is parking timing and in residential where students are allowed hourly parking. This step will ease congestions and ensure that every individual has an opportunity to park. In other aspects, this problem can be dealt with via the limitation of parking privileges. Restrictions can be given for senior students only. Limiting the number of students driving to school will eventually minimize and discourage others from driving. Therefore, the use of individual vehicles will reduce, and space will be created. Introduction of parking fees will also help minimize congestions in parking spaces. This can be paid per year or semester. By introducing the fees, only individuals willing to pay will have parking spaces. Furthermore, the revenue collected will be used to improve the parking lots. In other instances, the capital can be utilized in expanding and acquiring other land that can be used for parking. Providing free parking for everyone encourages individuals lacking the right documentation to drive. This leads to increased incidences of accidents in the school. Therefore, proper documents should be submitted for every individual w ho will be driving. This will eventually ensure that only students with proper qualifications are allocated space for parking. Hard work should be put in the devising of residential houses to discourage use of cars. This can be achieved by huddling all parking in the exterior of development regions. In essence, this will discourage residents from driving to the interior of the residents. It will also limit the ownership of automobiles and thus ensure that the limited space available caters for the few individuals. Sharing services can also be implemented. Having a car on site for use when individuals require transportation is another step that can help reduce competition for parking. For example, ensuring that a bus is available at all times for the students. Building a parking garage in the schools for the students sees to the utilization of the limited space and creates enough parking spaces for all. This helps to improve the flow of traffic and parking overflow. Garages ensure en ough space is available for everyone as they create room for vehicles. Collaborating with local organizations to create a sharing relationship of facilities is another way of solving parking problems. This step will seemingly help to reduce the rates for parking and ensure that reticent spaces for parking are available. For example, allowing development areas to use the school parking during the weekends and holidays while students utilize their space during school days (Beatley 54). Another way could include adapting

Uniform commercial code Assignment Example | Topics and Well Written Essays - 500 words

Uniform commercial code - Assignment Example It would be advisable to communicate directly with them. If they refuse to cooperate and clear the front porch, it would then be acceptable to contact the lawyer. You need to inspect the compound and confirm that the cleaning and laundry supplies are indeed piled there. It would be easier if this matter could be resolved amicably out of court. 3. Inform the worker to leave the dishwasher as it is. Call the dishwasher service line to ask for assistance. Ask them to inspect the dishwasher and ascertain the damage done. If they agree to fix the dishwater and also reimburse plates, then that would be a fair settlement. It would be vital if you could keep the melted plates as evidence in case they are required. 4. Call the son and ask him to explain to you exactly what happened. Inform the lawyer of everything that has happened, and have the boy to talk to the lawyer and narrate the whole story to him. The medicine that the guest used should be stored in a safe place and left untouched. It would be important to contact the police and inform them of the entire situation. 5. Communicate with the food supplier and request a meeting with him to discuss the issue. Ask him to calculate how much this would cost. Inform the lawyer of this new development and then carefully go ahead with these plans. It is important to keep all the typed documentation of all the necessary requirements, as well as signed agreements, receipts, and bills. 7. Inform him that it is possible to pay by cheque. Ask for photocopies of his identification documents. Keep a photocopy of the cheque, as well as one of the bank slip. Keep these documents in safe storage and ensure you have all of his contacts. 9. Confirm attendance with the B&B restaurant owner. Make sure that you have accompaniment as you go meet him. Do not reveal too much company information and keep the meeting brief and formal as possible. 10. Inspect the scene of the accident and make sure you

The Greatest Wealth Is Health

The Greatest Wealth Is Health The greatest wealth is Health. The public nowadays are more concern about their health because health can be consider as an asset for a person. A good health is foundation of better future for a person or a family. In present modern era of technology, public are more educated and knowledgeable. With the easily accessibility of information from the internet, it also helps the public to gain the extra knowledge easily. Thus, there are more aware on their personal health status compare to those days. 14th of November is the World Diabetic day that celebrates worldwide. In authors working hospital there is a plan to organize health screening for community. The purpose of organizing this Diabetic awareness campaign is to highlight the importance of education to protect future health of community and prevent the serious health consequences due to diabetes. Diabetes is a chronic disease that emerging global epidemic. The rapid increase in people with diabetes is due to increasing overeating, obesity, and physically inactivity. Diabetes can be due to the pancreas does not producing enough insulin, or the inability to use the insulin that is produced by pancreas effectively and this leads to high concentration of glucose in the blood. There are three type of diabetes. Type 1 diabetes is due to lack of insulin production and type 2 diabetes is due to body unable to produce insulin that needed effectively. Third, gestational diabetes is due to hyperglycemia that is first recognized during pregnancy in a pregnant mother who never had diabetic before. Type 2 diabetes is most common on and usually affects adults. There is a report from WHO (2006), said that type 2 diabetes in children is very rare previously, but it have increased worldwide recently for the newly diagnose cases in children and adolescents. People may live with diabetes for yea rs but diabetes is a metabolic disease that affects the multiple organs such as cardiovascular, kidney, retina and nerve damage. According to World Health Organization (WHO) 2012 statistic reported one in six adults is obese, one in ten for diabetic and one in three has high blood pressure. It was stated in New Straits Times (30 April 2012), Malaysia has one of the worlds highest number of diabetes cases among its population with 2.6 million registered patients. Lack of awareness about diabetes can lead to complication such as blindness, amputation, and kidney failure. The author as a team leader of this Diabetes Awareness campaign is responsible to identify team members to participate in the activities. As when we share a common direction or sense of community, we can get there more quickly and easily as everyone had take part and share the burden and not one-man show to complete everything. As a very familial quote that we always heard The whole is greater than sum of parts. So, effective building is very important to make this Diabetic Awareness campaign work successfully. 2. The Key Component of Effective Team Building Team building is a philosophy of job design in which employees are viewed as a team member instead of as individual worker. It is also means that the selection of a group of peoples with the mix skills that had similar interest to work together for a common objectives. Working together without bringing the personal feeling or interest into the teams, it helps to build synergy between its members. As a result, the work, at hand, gets efficiently done. A team cannot perform well when there are team members who do not focus or are serious about their responsibility of their duty, so the key component of effective team building is very important to achieve the goals and objectives that had been set. According to Rahim, Lim, Madya (2011), with the active participation of each of its member, the objectives of the group are accomplishes by the name of the great team. Besides that, the trust and support one another and respect one anothers individual from a team member also is important. Th ere are six key components of effective teams. a. Clearly state team purpose Team purpose, goals and target is very important information for the team members. Because the team members need to know what is their accomplishment in a team. The purpose, goal and target of a team can defined as the essence of the team also. The team purpose needs to include measurable goals, and the operating guideline. When the team members know the purpose, goal and target of the team clearly, it helps team member have a mindset to accomplish their task. Besides that, it also helps the team member to create a dynamic plan to fill the gaps to achieve the purpose, goal and targets of the team. According to Rhodes (2006), when the team members has a clear understanding on the team purpose and the role they play will achieve a better results. And the team highly focus team is a team which have a clear purpose, vision and clear ways of working. b. Team composition Team composition is a group of people that who will ultimate and be responsible for implementing a project. And it also involved in designing and monitoring it. Having the right team members is an essential component of all team building. Another key principle is having team members that have different skills, knowledge and experiences. Because it will generally leads to more creative and flexible in the project. Besides that, the team members can combined and share their individual knowledge on the specific issues that are needed in the project to complete the task. The purpose is to make use of the existing skills and experience to ensure the project moves forward with the best available knowledge. Every team member needs to be selected because of what it is that they are able to bring to the team. Thus, team members should be chosen based on what it is the need from them and their skills. Favoritism is not encouraged. c. Effective communication Communication is the exchange of ideas and information from one person to another that involve a speaker and a listener. It involved a sender transmitting an idea, information, or feeling to a receiver. Communication can be verbal and non-verbal and written. Verbal communication is like words, speech, chatting and so on. Nonverbal communication is like body posture, eye contact, facial expression, appearances and so on. All the team members are from different families and brought up differently. The team members have different cultures. Misunderstanding may occur. So, an effective communication is needed to reduce the misunderstanding among the team members. Another communication is written communication, is like newsletters, status reports, meetings, emails, letter, memo, forum and any other collaboration tools. This can be using to communicate among the team members and update the latest information especially if the interval between the next meeting and the present meeting too lon g. An effective and consistent communication is the most important trait of a successful team. Communication need to be clear while communicating to make sure a clear directive to team members. None of the other traits can occur without communication as information cannot be cascaded to and from the team leader and the team members. Thus, communication is very important to form an effective team. d. Active participation In an ineffective group, we will see some members do not perform fully up to expectations; some are too self-centered; some are too sensitive and temperamental; some are burned out; and some are just cannot get along with others. So, the team leader hold an important role to ensure all the team members participate and contribute to the team in achieving the goal and objective of the team. Brainstorming is usually used for solving the problem. Brainstorming is best when people feel free to present their ideas without the fear of the brunt of organizational politics or being judged, and also when there are no inhibitions. Brainstorming can be one of the most creative methods of solving any problem as it will make people think out of the box. According to a study Psychological Effects of Brainstorming by Pronin, Jacobs Wegner (2008),Velagapudi (2012) , the effects of thought speed on mood are partially rooted in the subjective experience of thought speed. This will results in joy-enhan cing effects of fast thinking. This will create a positive or conducive of environment for team members also. e. Active plan Active plan is one of the effective key components in effective team. The active plan is made and agreed upon by the team members. Hence, the team members have the same goal and same direction to accomplish the task. Besides that, it also includes feedback from the team members especially when making the team decisions. f. Ongoing assessment and evaluation This is a process that will be consistently running to assess the progress of the team. And this is to make sure the progress still within the direction of the goal. Besides that, the excellent staff will be awarded such as put in the credit in the appraisal. Certificate or souvenir can be given as a token of appreciation at the end of the project. While there is the failure during the ongoing progress, special coaching will be given to guide and to overcome the weakness. 3. The Author utilized the key components of effective team building for the Diabetic Awareness Campaign as below: a. Clear state team purpose A clear team purpose and goal need to be developed as this can work wonders for organization development. Goals and plans provide a sense of direction that focus on the specific target and direct the team members towards important outcomes. Besides that, the goal that set need to be specific, measurable, achievable, realistic, and time bound. For example, the specific goal is organize a Diabetic awareness campaign to create the awareness for the community on the diabetic health care to the hospital area. The goal is measurable as it will be held on 17th of November this year in author working hospital main lobby and the estimated participants will be 200 persons from 9a.m until 12 midday. The goal is achievable as the author and other team members will print notices and send to the residents who stay nearby to inform them about this activity. The goal is realistic as the team members have various skills and knowledge to accomplish the objective. The author and other team members will book and check all instruments a day before the exact day. b. Team composition It is important to determine the team member in the team. The selection is according to the team projects and not nepotism. Because it involves how the team members work to achieve the team goal with using their knowledge and their skills. For example, in this Diabetic Awareness campaign, author require the health educator, diabetic nurse for giving the health education, dietitian for diet advice, physiotherapist teaching the exercise, 8 staff nurses for checking the blood glucose and blood pressure. And 4 assistance nurses are needed for the taking participants abdominal girth, weight and height of the participants, 4 ward aides to usher and to register the participants. And author has 4 team members to standby and to take over the staffs when they need to have a short rest while the campaign is on. c. Effective communication Communication can be considered as a most important factor in successful teamwork. Without communication, nothing can be done. Besides that, thrust is develops through frequent and meaningful interaction and communication. According to Henmen (2011), healthy teamwork depends on the ability of the participants to give accurate feedback to each other, even when the feedback is negative. The negative feedback is like when a team member suggests buying the extra glucometer for the poor family, although the idea is good but due to the budget constraint, this will be a negative feedback. There are five tips to make the effective communication. First, during the communication, the languages that uses need to be clear and concise. Second, the information to be delivered need to be complete. To avoid missing important information all the information can be written down on the paper. Third, the communication needs to be in conversational tone because it invites interaction and if in confrontat ion tone, it invites argument. Forth, to make sure the voice and the words is clear so that messages can pass correctly. Fifth, always considerate of other team members feeling and pinpoint the issues and not the person. d. Active participation Encouraging the team members to be active in participation in discussion or brain storming is one of the team leaders tasks. As a team leader, author gives encouragement and motivation in participation of the team members. Recognition will be given to those who had outstanding performance on the task assigned. For example, give a word of well done and give recognition in front all the team members. And also will give recognition for those who have consistency on their task and have the responsibilities and commitment on the task given. Author also will give recognition for the team member who works hard to increase their performance and demonstrate progress. Because as a human being, people feel pride in their works and also care about what the superiors and peers think of their accomplishments. Author also will respects and empower the team member on their task. When the team member is empowered, they feel the ownership of the assigned task and will try their best to perform well. B esides that, it creates a greater sense of responsibility among team members. And the team members will feel enthusiastic in performing the task too. Next, is to trust the team members ability on handling the task that had assigned to them. Thrust is the strong force that binds the atoms of the team. (Preston,2005). e. Active plan During the meeting, open discussion in English or Bahasa Malaysia will be used to prevent misunderstanding. The team goal identified in the earlier part will be the priority. For example, the discussion on the goal or problems can include brainstorming for solution. The team members will understand each individual task. During discussion, the team member can have better coordination of individual skills and able to share their responsibilities also. Follow up session will be made for those who fail or have problem Sometimes, there will have some disagreement in the team because not all peoples have the same ideas and thinking. At this time, looking at the priority of the tasks and the consensus among the team member is important in making the decision of a task. Open debate will be using to rule out the pros and cons of the related issue. Besides that, democratic leadership will be used. Decision must be agreeable by the majority. As a team leader, the author will schedule meetings when everyone will attend. Besides that, author also will plan the dates of meetings and team member will be informed. The meetings will be held once a week. This is to reduce the risk of the team member not able to attend meetings. The attendance of team members is important especially while making the team decision. A mechanism also will develop to inform the meeting minutes and decisions especially for those team member that are unable to attend such as email, hard copy and so on. This is to make sure every team members has the chance in the consensus of making the decision for the team. f. Ongoing assessment and evaluation The works of the team member need to be assessed. This is to ensure team members are in the right track, not slow in progress and not meeting difficulties. The team members are also advised to give feedback on the task or difficulties they have met. Besides that, gathering the feedback is also important because the feedback may help to improve the job. If there is a failure, an audit team needs to come in to do the assessment to rule the failure. At the end of the campaign, the entire team member will need to do an evaluation for program. Author will take this opportunity to acknowledge the team member that had done well on their work. And also will discuss on the skills that could be improved. Besides that, to assess on the job satisfaction on the team members to make a plan that author could be improve in effective team building. 4. Conclusion As a conclusion, in high-performance team, the team members are co-operatives rather than competitive. The team member are supporting one another and work towards with hand in hand to reach the common goal rather than being divisive. Thus, the six key components are very essential to form effective teams and get the outcome as plan. (2802 words)

What Is An Education? :: essays research papers

What is an Education? According to the Oxford English Dictionary one of the definitions of the word "education" is: "The systematic instruction, schooling or training given to the young in preparation for the work of life; by extension, similar instruction or training obtained in adult age. Also, the whole course of scholastic instruction which a person has received. Often with limiting words denoting the nature of the predominant subject of the instruction or kind of life it prepares, as classical, legal, medical, technical, commercial, art education." Although this is an accurate description of what an actual education may be, there is a great deal more to the process of becoming educated than the actual instruction and schooling one may receive. If you asked a person in high school or college exactly why he is in school his response would probably have something to do with "getting an education." Is that really why he is there? The next question you may ask is "what are you going to do with your education?" The response would undoubtedly include something about "getting a good job" or perhaps "to make a lot of money." Most of the people in the United States have been brainwashed to think that unless one has at least a high school diploma there is no future anywhere for him. This is completely untrue. There is no guarantee that getting a high school "education" is going to get you anywhere. A student may spend eight years between high school and college getting an "education." He can graduate from college with A's in every class, but still, this "education" means nothing. For example, suppose this "Straight A" student goes for a job interview. Obviously one of the first things to be looked at is the college diploma. Good grades, which by today's standards are an indication of an educated individual, are usually very helpful in getting a good job. But alone, good grades are a completely unfair indication of how a person will perform under the pressures of the real world. Instead of looking at a person's grades during a job interview and deciding whether that person is eligible for a particular position, why not try something realistic? To determine a particular person's "education" why not allow the individual to apply what he knows to his position in the workplace. This is the true test of what an education is. The application of knowledge acquired is a much better determinant of true education than whether or not a person got an A in Wood Shop or World History. A good percentage of people in the United States graduated from high school.

A Streetcar Named Desire by Tennessee Williams

Blanche Dubois, the protagonist in Tennessee Williams’ A Streetcar Named Desire play seeks to reside with Stella Kowalski, her sister, but Stanley Kowalski, Stella’s husband, is against the idea. Blanche used to live at her parent’s home in Mississippi’s Laurel area but the mansion has been foreclosed due to an unpaid mortgage. She thus desperately seeks shelter at her New Orleans sister’s home.  Blanche’s disdainful and contemptuous attitude however makes Stanley oppose the idea of hosting her from the very beginning. For example, although Blanche is currently a hopeless destitute, she looks at Stanley’s modest home with utter scorn (Williams 6).Blanche’s delusional class considerations prevent her from acknowledging that she is at the moment at the mercy of the Kowalski’s. She thus demonstrates derision towards the Kowalski house that makes Stanley to immediately dislike her. Blanche’s ridiculously fantastic re asoning even makes her try to convince Stella to leave Stanley.Blanche holds that Stanley is that Stella is of a higher social status than Stanley. This is clearly a preposterous argument based on the existing facts (Jerz 35).   If at all there are suitable men who can rescue Stella from Stanley, then it beats sense to imagine that Blanche has come to seek shelter at Stella’s place.Blanche should have in fact gone to one of those high-class men and thus avoid becoming the desperate destitute she currently is. Williams thus uses Blanche to illustrate the frustration that a blind loyalty to class and social distinctions causes to people.To begin with, Stanley’s justified hatred for Blanche makes Blanche’s life become increasingly hard. As an illustration, Stanley hosts a poker game tournament whereby a number of his colleagues come to play. It then occurs that Mitch, one of Stanley’s friend’s becomes smitten by Blanche and the two begin an affair. Stanley does not however want any of his friends to be associated in any way with Blanche.To demonstrate his utter disgust towards Blanche, Stanley violently disrupts a rendezvous that Mitch is having with Blanche in Stanley’s bedroom. Stanley even offers Blanche a bus ticket to Mississippi to demonstrate that she is essentially unwelcome in his house. To make matters worse, Stanley investigates Blanche’s past life, which is ugly, and relates all the details to Mitch.This situation makes Mitch to tell Blanche to her face that he cannot marry her. Blanche’s contemptuousness has thus led to her losing a promising marriage mate who would potentially rescue her from her financial quagmire (Clum 126).Afterwards, a clearly deluded Blanche boastfully tells Stanley that she is soon leaving the Kowalski residence with a millionaire boyfriend named Shep Huntleigh. Since Stella is just about to have a baby, Stanley briefly puts aside his disdain for Blanche and suggests th at the two have a party. Blanche however brushes rudely aside Stanley’s suggestion. This dev elopement causes tension between Blanche and Stanley (Griffies 120). In the ensuing events, Stanley rapes Blanche.This rape ordeal is significant because it mainly results from Blanche’s contemptuous character. Had she agreed to engage in merrymaking with Stanley instead of showing disrespect to him, Stanley would not likely have raped her.   A new twist is introduced to the play because Blanche cannot convince anyone that Stanley actually raped her.   It is implausible how someone can rape someone whom they hate as Stanley detests Blanche. It is thus assumed that Blanche has gone mad and that she should be confined in an asylum for mad persons.Again, Blanche’s disdainful attitude is causing her problems because not body is giving her any attention regarding her raping by Stanley. Stella is at the forefront in arranging fir Blanche to be whisked away. The presumably man girl is thus taken away to an asylum. Williams has thus shown that wishful thinking and cosmetic class distinctions usually have disastrous results.In addition, through the play, Williams presents three important social lessons.   Firstly, he demonstrates that artificial class distinctions that make different-class people not interact are improper.This is because Stella’s marriage to Stanley seems to go on smoothly despite the fact that the two are of quire varied social classes. Stanley is of a lower class than Stella. The couple however has a fairly uneventful marriage life with the exception of the incidence when Stanley hits Stella mainly due to Blanche’s influence.Secondly, Williams seeks to urge people against adopting an escapist stance of entertaining ridiculous thoughts so as to mentally escape from reality. Blanche is a perfect illustration of this concept.   Her wild illusions prevents her from accepting that she is indeed needy and has to put up wit h any situation that comes her way. She thus offends Stanley, an aspect that leads to her sad demise. Stanley is angry that Blanche disdainfully looks down upon his lowly status.Moreover, Williams seeks to inform readers that real love knows no bounds through Stella and Stanley’s marriage. Stella truly loves Stanley despite the fact that the couple is of humble means. Even after she is beaten, Stella warmly embraces Stanley. Stanley also loves Stella as is evident from the loving embrace he gives his wife at the end of the play (Timm 154). Works CitedClum, John M. Still Acting Gay: Male Homosexuality in Modern Drama. New York: Palgrave Macmillan, 2000.Griffies, W. Scott. â€Å"A Streetcar Named Desire and Tennessee Williams' Object-Relational Conflicts.† International Journal of Applied Psychoanalytic Studies 4. 2 (2006): 110-27.Jerz, Dennis G. Technology in American Drama, 1920-1950: Soul and Society in the Age of the Machine. New York:   Greenwood Publishing Group, 2003.Timm, Larry M. The Soul of Cinema: An Appreciation of Film Music. Englewood Cliffs, New Jersey, USA: Prentice Hall, 2003.Williams, Tennessee. A Streetcar Named Desire. Jordan Hill, Oxford, UK: Heinemann Education Publishers, 1995.  

Agency Problem Essay

Financial Management (Agency problem) Prepared by: Sami Hassan Saeed Singabi August 2008 Introduction Economic science teaches us that due to their subjective needs, individuals have subjective preferences, and hence different interest. Occasionally different subjective interests give rise to conflicts of interest between contracting partners. These conflicts of interest may result in turn, in one or both parties undertaking actions that may be against the interest of the other contracting partner. The primary reason for the divergence of objectives between managers and shareholders has been attributed to separation of ownership (shareholders) and control (management) in corporations. As a consequence, agency problems or principal-agent conflicts exist in the firm. Agency theory deals with such problem. Agency theory is concerned with how these agency problems affect the form of the contract and how they can be minimized, in particular, when contracting parties are variously informed (or uncertain). Agency problem A problem arising from a conflict of interest between principals such as investors and agents acting for them, such as brokers or managers. Agency problem refers to a conflict of interest arising between creditors, shareholders and management because of differing goals. It exists due to problems in corporate governance. A typical problem is that of senior management of a company, who are charged with running the business in the interests of shareholders; choose instead to operate to maximize their own interests. A simple example is the hired anager who fills his pockets at shareholders’ expenses. For example, an agency problem exists when management and shareholders have conflicting ideas on how the company should be run. Agency problems that arise in a corporation have troubled economists for some time. There are a number of mechanisms that have been used to try and reduce these agency problems. Many of these mechanisms try to link the manager’s compensation to the per formance of the firm. Typical examples include performance shares, restricted stock grants, and executive stock options. This dissertation is an empirical study of whether the use of executive stock options has in fact reduced the agency problems between managers and stockholders. In this dissertation, two different testing methodologies are used to address the agency problem reduction issue. One methodology looks at some significant event such as a merger or divestiture to see if an executive’s holding of stock options affect what decisions are made. For example, do larger holdings of stock options motivate managers to take on riskier investments? By increasing the risk of the firm, managers can increase the value of the stock options. Another question of interest is whether in taking on risky investments; do executives increase the leverage of the firm? By increasing the leverage of the firm, the executive might increase the risk of the firm and thus the value of the option holdings. An agency relationship An agency relationship arises whenever one or more individuals, called principals, hire one or more other individuals, called agents, to perform some service and then delegate decision-making authority to the agents. The primary agency relationships in business are those :- (1) Between stockholders and managers and 2) Between debt holders and stockholders. These relationships are not necessarily harmonious; indeed, agency theory is concerned with so-called agency conflicts, or conflicts of interest between agents and principals. These relationships are not necessarily harmonious; indeed, agency theory is concerned with so-called agency conflicts, or conflicts of interest between agents and principals. Expansion increase potential agency problems, if you expanded to additional locations you could not physically be at all locations at the same time. Consequently, you would have to delegate decision-making authority to others. Creditors can protect themselves by: (1) Having the loan secured. (2) Placing restrictive covenants in debt agreements. (3) They charge a higher than normal interest rate to compensate for risk. Agency cost A type of internal cost that arises from, or must be paid to a manger acting on behalf of shareholders. Agency cost arises because of core problems such as conflicts of interest between share holders and management. Shareholders wish for management to run the company in away that increases shareholders value, but management may wish to grow the company in away that maximize their personal power and wealth that may not be in the best interest of shareholders. Agency costs are inevitable within an organization whenever shareholders are not completely in charge; the cost can usually be best spent on providing proper material incentives and moral incentives for agents to properly execute their duties, thereby aligning the interests of shareholders (owners) and agents. The principals (the shareholders) have to find ways of ensuring that their agents (the managers) act in their interests. This means incurring costs, ‘agency costs’, to (a) monitor managers’ behavior, and (b) create incentive schemes and control for managers to pursue shareholders’ wealth maximization. Various methods have been used to try to align the actions of senior management with the interests of shareholders, that is, to achieve ‘goal congruence’. Linking rewards to shareholder wealth improvements: Owners can grant directors and other senior managers share options. These ermit the managers to purchase shares at some date in the future at a price, which is fixed in the present. If the share price rises significantly between the dates when the option was granted and the date when the shares can be bought the manager can make a fortune by buying at the pre-arranged price and then selling in the market place. The managers under such a scheme have a clear interest in achieving a rise in share price and thus congruence comes about to some extent. An alternative method is to allot shares to managers if they achieve certain performance targets, for example, growth in earnings per share or return on shares. Sackings: The threat of being sacked with the accompanying humiliation and financial loss may encourage managers not to diverge too far from the shareholders’ wealth path. However this method is seldom used because it is often difficult to implement due to difficulties of making a coordinated shareholder effort. Selling shares threat and the take- over: Most of the large shareholders (especially institutional investors) of quoted companies are not prepared to put large resources into monitoring and controlling all the firms of which they own a part. Quite often their first response, if they observe that management is not acting in what they regard as their best interest, is to sell the share rather than intervene. This will result in a lower share price, making the raising of funds more difficult. If this process continues the firm may become vulnerable to a merger bid by another group of managers, resulting in a loss of top management posts. Fear of being taken over can establish some sort of backstop position to prevent shareholder wealth considerations being totally ignored. Corporate governance regulations: There is a considerable range of legislation and other regulatory pressures (e. g. the Companies Act) designed to encourage directors to act in shareholders’ interests. Within these regulations for example, the board of directors is not to be dominated by a single individual acting as both the chairman and chief executive. Also independently minded non-executive directors should have more power to represent shareholder interests; in particular, they should predominate in decisions connected with directors’ remuneration and auditing of firm’s accounts. Information flow: The accounting profession, the stock exchange, the regulating agencies and the investing public are continuously conducting a battle to encourage or force firms to release more accurate, timely and detailed information concerning their operations. An improved quality of corporate accounts, annual reports and the availability of other forms of information flowing to investors and analysts such as company briefings and press announcements help to monitor firms, and identify any wealth-destroying actions by wayward managers early. Conclusion Diffuse ownership of publicly held companies reduces the owners’ ability to monitor managers because they would have to bear the full monitoring costs while gaining only a small marginal benefit. Managers may therefore act to maximize their wealth through personal use of corporate assets, stock manipulation and sub optimal decisions at the owners’ expense. Thus agency theory practical mechanism is weak, because it is unable to provide practical conclusions with regard to agency problems. References: 1. Wikipedia, the free encyclopedia. htm 2. www. referenceforbusiness. com 3. Financial-dictionary. The free dictionary. com