From a business owner's perspective, which of the following is an agency cost?
A) Costs to provide appropriate incentive contracts for top management
B) General supplier price increases
C) Losses from poor economic conditions
D) Insufficient executive pay

Question

Quizplus · Accepted Answer

Agency costs include expenses related to resolving conflicts of interests between managers and shareholders, such as costs for incentive contracts to align management's actions with shareholders' interests.

From a Business Owner's Perspective, Which of the Following Is