Which of the Following Statements Is Not Consistent with Agency

Multiple Choice

Which of the following statements is not consistent with agency theory:

A) Entities employ managers to conduct business on their behalf and to negotiate contracts with other parties.
B) Managers are more likely to favour the interests of debtholders than those of shareholders in managing debt 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.