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ahraadedftah1eg Accounting profit � ameasures the difference between

1hargsdeftdaeathe total revenue agenerated by athe organization and its


1hgrasdeftdaea1dstotal acost.

ahgaradetfdse12. Acquisition (or takeover) � awhen one organization


1hgarsdtefde1 Agency costs � the costs resulting from managers
1aasreetdfdascosts of monitoring them to try to prevent this abuse.
hgaeestrtdfdagaaa between the providers of capital, referred to as the principal,
1heetasrdfdaghaqgaa and those who employ that capital on their behalf, referred
ageaestrfdah1as the agent (see principal�agent problem).
ageasterfddah1gd
a1eeatsrfdaaa4. aAsymmetry of information � exists when the agents
agesrtafddah1g (managers) running a corporation have greater access
ageaatrafddeh1vgirtue of their position.

aeaeatstfrddahddsaasd qaaa a more comprehensive assessment of the state of


aeheeatsfrddag1d gtheir organization. It enables managers to provide
aeaegttafrrddshhsd qaa consistency between the aims of the organization and
1gaeeatfdrdshaasd qaa the strategies undertaken to achieve those aims.
rheaaefrsdgas.

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