Which of the Following Statements Is True of the Agency

Multiple Choice

Which of the following statements is true of the agency problem facing the modern public corporation?

A) It arises when a corporation hires a private agency to conduct audits of its business practices.
B) It arises when a government agency is assigned with the task of identifying corrupt practices by a corporation.
C) It arises as a consequence of the separation of ownership and control in the corporation.
D) It arises as a consequence of the managers of the corporation focusing on enhancing shareholder value.