Agency costs include incentive costs, monitoring costs, enforcement costs, and individual financial losses incurred by principals.

Name: Agency costs include incentive costs, monitoring costs, enforcement costs, and individual financial losses incurred by principals.
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Question

Quizplus · Accepted Answer

Agency costs arise from the conflicts of interest between principals and agents, including costs to align interests, monitor performance, enforce agreements, and any financial losses principals may suffer due to these conflicts.

Agency Costs Include Incentive Costs, Monitoring Costs, Enforcement Costs, and Individual