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According to Shankman (1999), Two Features Make Agency Relations Special

Question 2

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According to Shankman (1999) , two features make agency relations special. One of these is the inherent conflict of interest between shareholders and managers. What is the other?


A) Short-term focus of the ownership goals.
B) Limited communication between owners and managers.
C) Large differences in defined rights and obligations.
D) Informational asymmetry between principal and agent.

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