Download e-book for iPad: ACCA - P1 Professional Accountant: Study Text by BPP Learning Media

By BPP Learning Media

ISBN-10: 0751763748

ISBN-13: 9780751763744

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Extra resources for ACCA - P1 Professional Accountant: Study Text

Sample text

4 Performance The agent who agrees to act as agent for reward has a contractual obligation to perform his agreed task. An unpaid agent is not bound to carry out his agreed duties. Any agent may refuse to perform an illegal act. 5 Obedience The agent must act strictly in accordance with his principal's instructions provided these are lawful and reasonable. Even if he believes disobedience to be in his principal's best interests, he may not disobey instructions. Only if he is asked to commit an illegal act may he do so.

1 Accountability Key term In the context of agency, accountability means that the agent is answerable under the contract to his principal and must account for the resources of his principal and the money he has gained working on his principal's behalf. 2 Fiduciary duty A legal definition of fiduciary duty is as follows. Key term Fiduciary duty is a duty imposed upon certain persons because of the position of trust and confidence in which they stand in relation to another. The duty is more onerous than generally arises under a contractual or tort relationship.

Mendelow's matrix represents a continuum, a map for plotting the relative influence of stakeholders. Stakeholders in the bottom right of the continuum are more significant because they combine the highest power and influence. Level of interest Low High Low B C D Power A High (a) (b) (c) (d) Key players are found in segment D: the organisation's strategy must be acceptable to them, at least. An example would be a major customer. Stakeholders in segment C must be treated with care. They are capable of moving to segment D.

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ACCA - P1 Professional Accountant: Study Text by BPP Learning Media


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