To: James Boyle, CPA, CEO of xBSL,

Date: October 4, 2021,

Subject: Boyle Software Limited (BSL'S) Current Approach

Dear James Boyle,

Generally, BSL's goal of gaining market share is sensible because it will increase the
company's value. As this is the purpose of financial management, it helps Boyle's responsibility
of maintaining BSL in business. Boyle's current proposal is summarized as follows:

 Maximize cash flow by shortening the collection period

 Increase net income by improving sales-to-cost-of-sales efficiency

 Maximize cash flow by shortening the collection period

 Hire a software developer to help BSL expand in the long run

Boyle is focusing his efforts on items that will allow him to pay back his short-term debt
and maximize his profits while constantly growing. His long-term goals are reasonable, but his
plan falls short of industry standards. BSL is experiencing growth, but it cannot grow faster than
it can maintain.

Although agency concerns can arise in any business, BSL looks to be well-positioned to
prevent them. Boyle owns 40% of the BSL, with the remainder 60% held by investors. Since
shareholders control the company, this ownership arrangement eliminates agency problems.
Boyle is also motivated to work for the benefit of shareholders since he controls a large share of
the firm. Boyle, on the other hand, is in control of all aspects of the business. As BSL's top
management, Boyle should maintain the business's normal functioning or risk being taken out by
another firm, which might culminate in his dismissal. As a result, BSL has created a management
equilibrium that guarantees that all participants work together towards objective: growing BSL's
total equity.