Which of the Following Statements Is Not Consistent with Agency

Multiple Choice

Which of the following statements is not consistent with agency theory?

A) Managers are employed to conduct business on behalf of the shareholders.
B) Managers have a legal and fiduciary duty to act in the best interests of the shareholders.
C) Managers are more likely to favour the interests of lenders in managing debt contracts.
D) Costs are incurred in monitoring and controlling agent's behaviour.