Which of the Following Statements Is True in the Context

Multiple Choice

Which of the following statements is true in the context of principal-agent relationships?

A) The agency relationship is confined to the top management and does not continue down the hierarchy within the company.
B) Agents almost always have more information about the resources they are managing than the principal does.
C) Information asymmetry can make it easier for principals to measure how well an agent is performing.
D) In a principal-agent relationship, the decision making power rests entirely with the principals.
E) The relationship between the company and the suppliers is an example of a principal-agent relationship.