Agency Theory Was Developed Principally by Researchers in Economics and Finance

question 52

True/False

Agency theory was developed principally by researchers in economics and finance to highlight the fact that individual employees will often act in the interest of their employer rather than in their own self-interest.

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Definitions:

Assignee

An individual or entity to whom rights or interests are transferred by another, known as the assignor.

Notice

Formal communication or announcement necessarily made to inform a party of certain legal processes or actions.

Assigned Benefits

The transfer of the right to receive benefits from a policy or agreement, such as insurance, from the original beneficiary to another party.

Equitable Remedy

The requirement that a party do something or refrain from doing something, beyond the payment of money.