Separation of Ownership and Control.pdf - Article Review Separation of ownership and control Responsibility for Liability An organization's decision

Separation of Ownership and Control.pdf - Article Review...

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Article Review Separation of ownership and control Responsibility for Liability An organization's decision process consists of decision management (initiation and implementation) and decision control (ratification and monitoring). (Farma & Jensen, 1983). The authors focus on explaining in this article the significance of an effective separation and ownership of a decision-making system where responsibilities are defined along the decision chain in all organization structures across different scope, size, objectives and nature of business. Who owns and control the decisions made The principal and agency problem continues to be unique and very complex. Key decisions will be made to ensure its survival; there is constant contrast between the interest of both the principal and the agent. Most-recent collapses of corporations are due to improper actions and wrongful decisions taken by agents. According to Farma & Jensen, 1983, they stated that the agency problem arose because contracts are not costlessly written and enforced. Some key decisions are
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