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Select as choices all of the following that you believe depict the 'agency' relationship inside the corporation. Note: A correct answer requires that you check
Select as choices all of the following that you believe depict the 'agency' relationship inside the corporation. Note: A correct answer requires that you check ALL that apply.
In the context of the agency relationship shareholders are the principals. | ||
The goals of the managers may not always align themselves with the goals of the shareholders. | ||
One of the goals of the study of modern corporate finance is to maximize agency costs. | ||
The goal of shareholder wealth maximization often leads to agency costs. | ||
The compensation plan has many advantages but using it to reduce agency costs is NOT one of these advantages. | ||
One type of agency costs are lost opportunities caused by conflicts too difficult to resolve. | ||
In the context of the agency relationship managers are the principals. |
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