Which of the Following Is an Example of the Agency

Multiple Choice

Which of the following is an example of the agency problem?

A) Managers always invest in projects that have appropriate returns and that will increase shareholder wealth.
B) Managers resign when they believe they have not always acted in the best interests of shareholders.
C) Managers conduct an acquisition program purely to increase the size of an organisation.
D) Managers do not look for new projects as they want to avoid business risk.
E) Both C and D are examples of the agency problem.