Which of the Following Statements Is Correct

question 46

Multiple Choice

Which of the following statements is correct?

• A) Given the multi-owner nature of most large companies, agency costs associated with perquisite consumption are not really a problem.
• B) Managers may operate in the shareholders' best interests, but they may also operate in their own personal best interests.As long as managers stay within the law, there simply are not any effective controls that shareholders can implement to control managerial decision making.
• C) Shareholder agency costs include the opportunity costs associated with constraining managerial freedom but do not include managerial salaries.
• D) An agency relationship exists when one or more persons hire another person to perform some service but withhold decision-making authority from that person.
• E) All of the above statements are false.

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Definitions:

Eco-Labels

Certifications or labels indicating that a product meets specific environmental standards, aimed at helping consumers make environmentally friendly choices.

Life Cycle

The series of stages through which an organism goes from birth to death.

Environmental Costs

comprise the negative impacts on the environment, including resource depletion and pollution, which are often not reflected in market prices.

Intact Newspapers

Newspapers that have been preserved without any physical alterations, tears, or significant damage.