REVISION EXERCISES H16025 Question (12 marks) (a) Why and how might managers not act in the best interests of the firm? (4 marks) (b) How can we use the output of the accounting system to help ensure that management's actions are in the interest of owners? (4 marks) (c) Under Positive Accounting Theory, what are agency costs of equity and agency costs of debt? Is it possible to put in place mechanisms to reduce all opportunistic action? If not, why not? (4 marks)