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What Is the Most Common Way That Agency Problems Are

Question 50

Multiple Choice

What is the most common way that agency problems are addressed in most corporations?


A) by using disinterested outside bodies to adjudicate between managers and shareholders when such conflicts arise
B) by minimising the number of decisions that a manager makes where there is a conflict between the manager's interests and those of the shareholders
C) by terminating the employment of employees who are found to have put their own interests above that of the company's
D) by prosecuting managers who have been found to have illegally used company monies for their own benefit

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