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Public Interest in Theories of Regulation - Essay Example
Author : jeramy97
Finance & Accounting
Pages 13 (3263 words)
Financial Accountancy Table of Contents: Sl.No. Particulars Pg. No. Essay 1 Public Interest in Theories in Regulation Situation Private Interest Theory Situation 3 4 5 5 Essay 2 Costs and benefits of Harmonizing Standards 6 Essay 3 Culture has no Influence on Accounting Practices 9 Essay 4 Agency Theory and Its Relation to Accounting 12 Essay 5 Meaning of Efficient Markets and Efficient Market Hypothesis 15 Essay 1: Public Interest in Theories of Regulation: Theories of regulation pertain to the explanation of allocation of resources in a market economy…
Theories of regulation help us to find solutions so that investors do not get exploited. Public Interest in theories of regulation pertains to allocation of resources in a regulated manner to safeguard the best interests of public. These distributions may be haphazard or aimed towards satisfying fewer people’s interests, if not regulated. This failure of markets may occur due to several reasons such as: Absence of competition Monopolies try and create barriers of entry to other interested firms Asymmetry of information Products of public goods are produced The scarce resources get deployed towards their purposes with little resources remaining for other requirements. So, to avoid such discrepancies public interest of regulation has to be undertaken by the Government. ...