Question 2 (Total marks 20) Agency theory is used to explain several aspects of accounting. a. Briefly describe agency theory and its key assumptions regarding the motivations of principals and agents. (8 marks) b. In your opinion, how realistic are the assumptions regarding the motivations of principals and agents as outlined in agency theory? (6 marks) c. In your own words, discuss how agency theory explains the need for financial accounting. (6 marks)