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:

Methylhexene

An alkene with a methyl group and a hexene (six carbon linear chain with a double bond) component in its structure.

Elimination

A type of chemical reaction where elements are removed from a compound, resulting in the formation of a double or triple bond.

Substitution

A chemical reaction where one atom or group of atoms in a molecule is replaced with a different atom or group of atoms.

Highly Substituted

Refers to a molecule that has a high number of substituent groups attached to its carbon backbone, influencing its chemical properties and reactivity.