Agency theory is grounded in the belief:
A) managers emphasize their own self interest
B) managers are resources
C) resources are the key reason for the success of firms
D) relatedness is the key to success in acquisitions
E) technology is grounded by the founding agent

Question

Quizplus · Accepted Answer

Agency theory posits that managers, as agents, may prioritize their own self-interest over the interests of the principals (owners or shareholders), leading to potential conflicts.

Agency Theory Is Grounded in the Belief