Agency costs can be reduced by monitoring:
I. managers' efforts
II. managers' actions
III. by intervening when managers veer off course
A) I only
B) I and II only
C) I, II and III only
D) III only

Question

Quizplus · Accepted Answer

Agency costs can be reduced by monitoring managers' efforts and actions as well as intervening when managers veer off course. Therefore, all three options (I, II, and III) are effective ways to reduce agency costs.

Agency Costs Can Be Reduced by Monitoring