Biology Forums - Study Force

When management and ownership are separate, a firm can incur agency costs.  These costs are due to a misalignment of goals where the manager’s goals are not the same as the owners’ goals. The resulting costs often come in the form of the excessive consumption of perquisites.  Go to the internet and do a search for Dennis Kozlowski of Tyco, then report your findings. 

1.  Who is Dennis Kozlowski?

2. Identify some of the agency costs incurred by Tyco shareholders that were the result of Kozlowski’s excessive consumption of perks?

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