Question 2 Which one of the following statements best describes characteristics likely to be found in agency relationships? 1. An agent wll find it relatively easy to achieve the best interests of the principal in most agency relationships 2. It is necessary to monitor an agent extensively, even where the agent voluntarily assumes 3. Agents who are highly bonded will be expected to try to maximise the returns of their 4. Agents will often not provide sufficient signalling to principals. It is principally this factor that the imposition of high bonding costs. principal and to seek returns for themselves results in principals finding it necessary to engage in and pay for monitoring