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In Public Stock Companies, Which of the Following Expectations of Principals

Question 35

Multiple Choice
In public stock companies, which of the following expectations of principals is most likely to lead to principal-agent problems?

In public stock companies, which of the following expectations of principals is most likely to lead to principal-agent problems?


A) the expectation that the agent will follow the country's laws and regulations
B) the expectation that the agent will go above and beyond the call of duty
C) the expectation that the agent will reconnect economic and social needs
D) the expectation that the agent will act in the principal's best interest

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