The Separation of Ownership from Control Creates Agency Costs Because

Multiple Choice

The separation of ownership from control creates agency costs because:

A) schemes,such as employee ownership schemes,align employee interests with those of the owners.
B) employees are likely to act in their own interest rather than that of the owners.
C) the threat of retrenchment serves to align the interests of management and owners.
D) the threat of a possible takeover serves to align the interests of management and owners.