Agency theory assumes that risks are to be minimized and shared between the two parties.

Name: Agency theory assumes that risks are to be minimized and shared between the two parties.
Brand: Quizplus
Rating: 4.8 (28 reviews)

Question

Quizplus · Accepted Answer

Agency theory proposes that risks associated with the principal-agent relationship should be minimized and shared between the two parties involved. This ensures that both parties work towards a common goal and that the interests of each party are protected. Therefore, option A is the correct choice.

Agency Theory Assumes That Risks Are to Be Minimized and Shared