Agency costs are fees paid by the management of a corporation to compensate any investor that feels it has suffered a loss due to the agency problem.

Name: Agency costs are fees paid by the management of a corporation to compensate any investor that feels it has suffered a loss due to the agency problem.
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Question

Quizplus · Accepted Answer

Agency costs are the loss of shareholder wealth associated with managerial waste and the cost of resources used to monitor agents' behavior and align incentives.

Agency Costs Are Fees Paid by the Management of a Corporation