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Agency Theory Recognizes Two Kinds of Information Consumers

Question 8

Multiple Choice

Agency theory recognizes two kinds of information consumers. Which of the following describes the relationship between them?


A) Principals hire agents to make decisions for them.
B) Agents hire principals to hold them accountable for decisions.
C) Principals and agents work together in the best interest of the organization.
D) Principals are government employees, while agents work in the private sector.

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