Question $3$

Which of the following scenarios best highlights the concept of agency costs in a complex

partnership?

Concentrating decision$-$making authority with a single partner.

A general partner making investment decisions independently of the limited partners.

Allocating resources to projects that benefit individual partners over the firm as a whole.

Partners agreeing to share profits equally despite varying levels of contribution.

A partnership agreement that allows each partner to unilaterally veto major decisions.