Which of the following would NOT relate to agency costs involving management's desire to maximise its benefits?

Question

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Management reports to shareholders are a mechanism to reduce agency costs, as they must report on the company's progress and performance, making it harder for management to hide their actions or decisions. A, B, and C are all examples of potential agency costs, as management may prioritize their own benefits (such as higher salaries or bonuses) over the long-term financial health of the company.

Which of the Following Would NOT Relate to Agency Costs