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Which one of the following illustrates the agency problem? a. Management expands its operations overseas which is favourably received by the financial markets. b. The

Which one of the following illustrates the agency problem?

a. Management expands its operations overseas which is favourably received by the financial markets.

b. The firm creates a management bonus program whereby managers are rewarded when the market price of the firms stock rises.

c. Management rejects a merger which was desired by the shareholders.

d. An employee offers a suggestion which will save the firm money and reduce the stress of his job.

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