Mini case | FIN 534 Financial Management | Strayer University

Instructions

Answer the following questions in a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Submit your assignment using the assignment link.

This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions.

Mini Case

Suppose you decide (as did Steve Jobs and Mark Zuckerberg) to start a company. Your product is a software platform that integrates a wide range of media devices, including laptop computers, desktop computers, digital video recorders, and cell phones. Your initial client base is the student body at your university. Once you have established your company and set up procedures for operating it, you plan to expand to other colleges in the area and eventually to go nationwide. At some point, hopefully sooner rather than later, you plan to go public with an IPO and then to buy a yacht and take off for the South Pacific to indulge in your passion for underwater photography. With these plans in mind, you need to answer for yourself, and potential investors, the following questions:

1. What is an agency relationship? When you first begin operations, assuming you are the only employee and only your money is invested in the business, would any agency conflicts exist? Explain your answer.
2. Suppose your company raises funds from outside lenders. What type of agency costs might occur? How might lenders mitigate the agency costs?
3. What is corporate governance? List five corporate governance provisions that are internal to a firm and are under its control.
4. Briefly describe the use of stock options in a compensation plan. What are some potential problems with stock options as a form of compensation?
5. Briefly explain how regulatory agencies and legal systems affect corporate governance.

Instructions

Answer the following questions in a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Submit your assignment using the assignment link.

This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions.

Mini Case

Suppose you decide (as did Steve Jobs and Mark Zuckerberg) to start a company. Your product is a software platform that integrates a wide range of media devices, including laptop computers, desktop computers, digital video recorders, and cell phones. Your initial client base is the student body at your university. Once you have established your company and set up procedures for operating it, you plan to expand to other colleges in the area and eventually to go nationwide. At some point, hopefully sooner rather than later, you plan to go public with an IPO and then to buy a yacht and take off for the South Pacific to indulge in your passion for underwater photography. With these plans in mind, you need to answer for yourself, and potential investors, the following questions:

1. What is an agency relationship? When you first begin operations, assuming you are the only employee and only your money is invested in the business, would any agency conflicts exist? Explain your answer.
2. Suppose your company raises funds from outside lenders. What type of agency costs might occur? How might lenders mitigate the agency costs?
3. What is corporate governance? List five corporate governance provisions that are internal to a firm and are under its control.
4. Briefly describe the use of stock options in a compensation plan. What are some potential problems with stock options as a form of compensation?
5. Briefly explain how regulatory agencies and legal systems affect corporate governance.

iption: w06a1 – Mini Case

UnacceptableNeeds ImprovementCompetentExemplaryExplain what an agency relationship is. When you first begin operations, assuming you are the only employee and only your money is invested in the business, would any agency conflicts exist? Explain your answer.Points:0 (0.00%)Did not submit or explain what an agency relationship is. Did not make assumption if agency conflicts exist. Did not explain answer.Points:16.875 (22.50%)Partially explained what an agency relationship is. Partially made assumption if agency conflicts exist. Partially explained answer.Points:19.125 (25.50%)Satisfactorily explained what an agency relationship is. Satisfactorily made assumption if agency conflicts exist. Successfully explained answer.Points:22.5 (30.00%)Thoroughly explained what an agency relationship is. Thoroughly explained an assumption if agency conflicts exist. Thoroughly explained answer.What type of agency costs might occur? How might lenders mitigate the agency costs?Points:0 (0.00%)Did not submit the types of agency costs that might occur. Did not submit how lenders may mitigate agency costs.Points:14.0625 (18.75%)Partially discussed the types of agency costs that might occur. Partially discussed how lenders may mitigate agency costs.Points:15.9375 (21.25%)Satisfactorily discussed the types of agency costs that might occur. Satisfactorily discussed how lenders may mitigate agency costs.Points:18.75 (25.00%)Thoroughly discussed the types of agency costs that might occur. Thoroughly discussed how lenders may mitigate agency costs.What is corporate governance? List five corporate governance provisions that are internal to a firm and are under its control.Points:0 (0.00%)Did not submit definition of corporate governance. Did not list five corporate governance provisions that are internal to a firm and under its control.Points:11.25 (15.00%)Partially defined corporate governance. Partially listed five corporate governance provisions that are internal to a firm and under its control.Points:12.75 (17.00%)Satisfactorily defined corporate governance. Satisfactorily listed five corporate governance provisions that are internal to a firm and under its control.Points:15 (20.00%)Thoroughly defined corporate governance. Thoroughly listed five corporate governance provisions that are internal to a firm and under its control.Briefly describe the use of stock options in a compensation plan. What are some potential problems with stock options as a form of compensation?Points:0 (0.00%)Did not submit brief description of the use of stock options in a compensation plan. Did not submit what are some potential problems with stock options as a form of compensation.Points:5.625 (7.50%)Partially provided a brief description of the use of stock options in a compensation plan. Partially described some potential problems with stock options as a form of compensation.Points:6.375 (8.50%)Satisfactorily provided a brief description of the use of stock options in a compensation plan. Satisfactorily described some potential problems with stock options as a form of compensation.Points:7.5 (10.00%)Thoroughly provided a brief description of the use of stock options in a compensation plan. Thoroughly described some potential problems with stock options as a form of compensation.Briefly explain how regulatory agencies and legal systems affect corporate governance.Points:0 (0.00%)Did not submit brief explanation of how regulatory agencies and legal systems affect corporate governance.Points:5.625 (7.50%)Partially provided a brief explanation of how regulatory agencies and legal systems affect corporate governance.Points:6.375 (8.50%)Satisfactorily provided a brief explanation of how regulatory agencies and legal systems affect corporate governance.Points:7.5 (10.00%)Thoroughly provided a brief explanation of how regulatory agencies and legal systems affect corporate governance.Clarity, writing mechanics, and formatting requirements.Points:0 (0.00%)More than 6 errors present.Points:2.8125 (3.75%)5–6 errors present.Points:3.1875 (4.25%)3–4 errors present.Points:3.75 (5.00%)0–2 errors present.

Name:w06a1

Description:w06a1 – Mini Case