_____ is an example of an agency problem.

Question

Quizplus · Accepted Answer

All three options illustrate potential agency problems between managers and shareholders. Managers engaging in empire building may be focused on their own career advancement rather than maximizing shareholder wealth. Managers avoiding risky projects to protect their jobs may prioritize their own job security over the potential benefits to shareholders. Managers over-consuming luxuries such as corporate jets may be using company resources for their own personal enjoyment rather than for the benefit of shareholders.

_____ Is an Example of an Agency Problem