Agency Theory Would Imply That Conflicts Are More Likely to Occur

question 15

Multiple Choice

Agency theory would imply that conflicts are more likely to occur between management and shareholders when

• A) the company is owned and operated by the same person.
• B) management acts in the best interests of maximizing shareholder wealth.
• C) the chairman of the board of directors is also the chief executive officer (CEO).
• D) the board of directors exerts strong and involved oversight of management.

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