Which of the Following Statements Is Not Derived from the Agency

Multiple Choice

Which of the following statements is not derived from the agency theory?

A) Entities employ managers to conduct business on their behalf and to negotiate contracts with other parties.
B) An entity is the centre of contractual relationships, with different parties having rights and responsibilities under the contracts.
C) Managers will not always act in the best interest of shareholders.
D) There are costs incurred in order to control agent's behaviour.