Which of the Following Statements Is Not Consistent with Agency

question 2

Multiple Choice

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

• A) Managers are employed to conduct business on behalf of the shareholders.
• B) Managers have a legal and fiduciary duty to act in the best interests of the shareholders.
• C) Managers are more likely to favour the interests of lenders in managing debt contracts.
• D) Costs are incurred in monitoring and controlling agent's behaviour.

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Definitions:

Unspoken Message

Communication that is not verbally articulated but conveyed through nonverbal cues, body language, tone, or context, often carrying significant meaning.

Communication Skills Training

Programs or workshops designed to enhance the ability of individuals to effectively convey, receive, and interpret messages in the workplace.

Listening

The active process of receiving, constructing meaning from, and responding to spoken or nonverbal messages.

Formal Committee Meeting

A structured gathering of individuals appointed or elected to debate and decide on matters of common interest or community concern within an organizational or governmental context.