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Accounting information such as net income is often used in agency contracts (e.g., compensation, debentures, etc.) to measure performance.Efficient contracting theory assumes managers are rational

Accounting information such as net income is often used in agency contracts (e.g., compensation, debentures, etc.) to measure performance.Efficient contracting theory assumes managers are rational and may behave either opportunistically or efficiently. Describe opportunistic behaviour in this context. (5 marks)

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