To Reduce Agency Costs, Organizations Implement Various Systems and Controls

question 10

Multiple Choice

To reduce agency costs, organizations implement various systems and controls to monitor behavior, including I. Publishing audited financial statements
II. Filing income tax returns
III. Tying financial rewards to reported results

• A) I and III only
• B) I and II only
• C) II and III only
• D) I, II, and III

---

Definitions:

Federal Trade Commission

An independent agency of the United States government, established in 1914 to prevent unfair business practices and to protect consumers.

Illegal Behavior

Actions or activities that are forbidden by law and subject to criminal penalties or fines.

Half-Truth

Information that is true but is not complete.

Advertiser

A person or company that pays to promote their products, services, or ideas through various types of media.