Which of the following is not used to overcome the agency problem?
A) Executive compensation
B) Audited financial statements
C) Related party transactions
D) Internal controls

Question

Quizplus · Accepted Answer

Related party transactions can actually worsen the agency problem as they create a conflict of interest between the parties involved. The other options, executive compensation, audited financial statements, and internal controls, are all tools commonly used to address the agency problem.

Which of the Following Is Not Used to Overcome the Agency