To reduce agency costs, organisations implement various systems and controls to monitor behaviour, including:
I $\text {Publishing audited firaricial staternents}$
II $\text {Filing income tax retums}$
III $\text {Tying financial rewards to reported results}$
A) I and II only
B) II and III only
C) I and III only
D) I, II, and III

Question

To reduce agency costs, organisations implement various systems and controls to monitor behaviour, including: 
I $\text {Publishing audited firaricial staternents}$
II $\text {Filing income tax retums}$
III $\text {Tying financial rewards to reported results}$
A) I and II only
B) II and III only
C) I and III only
D) I, II, and III

Quizplus · Accepted Answer

Publishing audited financial statements and tying financial rewards to reported results are measures aimed at reducing agency costs by ensuring transparency and aligning the interests of managers with those of the shareholders. Filing income tax returns is a legal requirement and not specifically aimed at reducing agency costs.

To Reduce Agency Costs, Organisations Implement Various Systems and Controls Publishing audited firaricial staternents\text {Publishing audited firaricial staternents}Publishing audited firaricial staternents

To Reduce Agency Costs, Organisations Implement Various Systems and Controls $\text {Publishing audited firaricial staternents}$