Solved

Which of the Following Is a Conclusion of Agency Theory

Question 13

Multiple Choice

Which of the following is a conclusion of agency theory?


A) Managers may accept excessive financial risks to increase the returns to shareholders.
B) Managers tend to avoid high-risk, high-return investments that may jeopardize their positions if successful.
C) Managers will always use the least expensive source of funds to finance investments.
D) Managers will tend to put the stockholders interests before their own security and ambitions.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions