Solved

The Key Aspect of the Agency Relationship for the Corporate

Question 36

Multiple Choice

The key aspect of the agency relationship for the corporate form of business is that:


A) the firm's owners will always act in the best interests of the managers.
B) the managers will always act in the best interests of the firm's owners.
C) with their management contracts, the managers have the incentive to act in the best interests of the shareholders.
D) the managers have different incentives from the shareholders.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents