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Which of the Following Is the Best Example of an Agency

Question 2

Multiple Choice

Which of the following is the best example of an agency problem?


A) A CEO makes a decision that maximizes his or her own self-interest at the expense of shareholders
B) The CEO of one organization sits on the board of directors of another organization
C) Both shareholders and managers express an interest in maximizing organizational profits
D) A CEO decides to take a pay cut because the corporation is struggling
E) A female CEO receives less salary than she should just because she is a woman

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