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Agency Theory Is Concerned with Resolving Two Problems That Can

Question 67

Multiple Choice

Agency theory is concerned with resolving two problems that can occur in agency relationships.Which of the following is not one of those problems?


A) Goals conflict between principals and agents.
B) Verification of actual agency activity is expensive and difficult to obtain.
C) Principals and agents have differing attitudes toward risk.
D) Stockholders and management align with external stakeholders.

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