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Agency Theory Suggests That Government Regulation Is

Question 13

Multiple Choice

Agency theory suggests that government regulation is:


A) Necessary, because principals know that agents may not act in their interests
B) Necessary, because agents know that principals may not act in their interests
C) Unnecessary, because principals know that agents may not act in their interests
D) Unnecessary, because agents know that principals may not act in their interests

Correct Answer:

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