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State TWO (2) reasons why capital budgeting decision is so important. b . Agency theory is a concept used to explain the important relationships between
- State TWO (2) reasons why capital budgeting decision is so important.
b . Agency theory is a concept used to explain the important relationships between principals and their relative agent. Agency theory arise when principals self interest conflicts with the agent and the divergence in the interest leads to the agency cost. As the CEO of the company, suggest FOUR (4) options to reduce the divergence.
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