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Which One of These Is Most Apt to Be an Agency

Question 11

Multiple Choice

Which one of these is most apt to be an agency problem?


A) Increasing the dividend payments to shareholders
B) Paying off debt in a timely manner
C) Increasing the sales of a profitable division
D) Forsaking a profitable project because it involves some risk
E) Selling an unprofitable division of the firm

Correct Answer:

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