The most common example of abuse of the agency relationship is:
A) management's compensation and perquisites.
B) managers working long hours.
C) breach of fiduciary responsibilities.
D) gross disregard of bondholders' interests.

Question

Quizplus · Accepted Answer

Management's compensation and perquisites are often cited as the most common example of agency problems, where managers may prioritize their own benefits over shareholders' interests.

The Most Common Example of Abuse of the Agency Relationship