IMPLICATION OF AGENCY RELATIONSHIP ON MANAGEMENT CONTROL SYSTEMS IN SMALL AND MEDIUM SCALE BUSINESS IN CROSS RIVER STATE

ABSTRACT
Implication of Agency relationship on management control systems in small and medium scale business in Abi Local Government Area of Cross River State was carried out to determine whether implication of Agency relationship can lead to goal accomplishment in Agency theory. The research used the questionnaires approach in collecting data that were analyzed with statistical tool such as parametric, percentage and student t-test. The questionnaires were distributed to two category of SMES forming the sample size. 

The revealed that implication of agency relationship in management control systems in small and medium scale business and that implication of agency alone does not have significant effect on efficiency on implication of agency. Based on this, we recommend that the government should evolve deliberate policies to develop small and medium Scale business as they constitute the bedrock of micro economic development in the state.


IMPLICATION OF AGENCY RELATIONSHIP ON MANAGEMENT CONTROL SYSTEMS IN SMALL AND MEDIUM SCALE BUSINESS IN CROSS RIVER STATE

A PROJECT SUBMITTED TO THE DEPARTMENT OF ACCOUNTANCY
FACULTY OF MANAGEMENT SCIENCES

 IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF POSTGRADUATE DIPLOMA (PGD) IN ACCOUNTANCY



TABLE OF CONTENTS
Title page                                                                                                       i
Approval                                                                                                       ii
Certification                                                                                                  iii
Dedication                                                                                                     iv
 Acknowledgements                                                                                    v
Abstract                                                                                                         vi
List of tables-                                                                                                x
Table of contents
CHAPTER ONE: INTRODUCTION
1.1       Back ground of the Study                                                               1
1.2       Statement of Problem                                                                      3
1.3       Objective of  the Study                                                                   3
1.4       Research Question                                                                           4
1.5       Hypotheses of the Study                                                                 5
1.6       Significance of the Study                                                                6
1.7       Definitions of the Term                                                                   7
1.8       Scope of Study                                                                                 8
1.9       Limitation of the Study                                                                   8

CHAPTER TWO:  LITERATURE REVIEW
2.1       Theoretical Framework                                                                   9
2.2       Agent                                                                                               15
2.3       Creation of Agency                                                                          15
2.4       Agency Relationship                                                                       16
2.5       Share holds Versus Managers                                                        17
2.5.1 Possible solution                                                                                19
2 .6      Creditors Versus Share Holders                                                    22
2.6.1   Relation between the principal and third parties                             23       
2.6.2   Duties of the Principal                                                                    24
2.7       Management                                                                                     25
2.7.1   Why Management Control Fail                                                      25
2.8       The system and process of controlling                                         27
2.8.1   Two prerequisites of control systems                                           27
CHAPTER THREE:           METHODOLOGY
3.1       Research Design                                                                             30
3.2       Population of Study                                                                        30
3.3       Sampling Design                                                                            30
3.4       Survey Instrument                                                                          31
3.5       Method of Analysis                                                                        31
3.6       Testing of the hypotheses                                                               32

CHAPTER FOUR:  FINDINGS
4.1       Analysis of Data                                                                            34       
4.2       Testing of Hypotheses                                                                    37

CHAPTER FIVE:               DISCUSSION
5.1       Introduction                                                                                   49
5.2       Discussion of Findings                                                                  49
CHAPTER SIX:      SUMMARY, CONCLUSION AND
RECOMMENDATION
6.1       Summary                                                                                      51
6.2       Conclusion                                                                                    53
6.3       Recommendations                                                                        54
6.4       Recommended Areas for further Research                                  54
            References                                                                                    55
            Appendices

LIST OF TABLES

Table 1:          Implication of Agency relationship on effective
segregation of duties                                                           35
Table 2:          Agency relationship on physical security                           36       
Table 3:          Implication of Agency relationship on
documentation and record keeping.                                  37
Table 4:          Average sales of SMEs with Agency relationship
againstsales of those without Agency relationship
on management override.                                                   38
Table 5:          Average sales of SMEs with Agency
relationship against sales of those without
agency relationship                                                             39
Table 6:          Average total expenditure of SMEs
with agency relationship against total expenditure
of those without agency relationship.                               42
Table 7:          Average net income of SMEs of SMEs with
Agency relationship against net income of those
without agency relationship                                               45

IMPLICATION OF AGENCY RELATIONSHIP ON MANAGEMENT CONTROL SYSTEMS IN SMALL AND MEDIUM SCALE BUSINESS IN CROSS RIVER STATE
Share on Google Plus

Declaimer - MARTINS LIBRARY

The publications and/or documents on this website are provided for general information purposes only. Your use of any of these sample documents is subjected to your own decision NB: Join our Social Media Network on Google Plus | Facebook | Twitter | Linkedin

READ RECENT UPDATES HERE