​The Ways to Address Agency Costs Include All EXCEPT

question 61

Multiple Choice

​The ways to address agency costs include all EXCEPT

• A)​running background checks on prospective employees
• B)requiring employees to punch time clocks
• C)spot checks of the quality of employee's work
• D)​providing better coffee machines in the lunch room

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Definitions:

Salvage Value

An asset's expected market price at the conclusion of its effective life.

Incremental Cash Flow

Consists of the additional operating cash flow an organization receives from taking on a new project.

Net Working Capital

The gap between what a business owns as current assets and what it owes in current liabilities, revealing the liquid funds available for operational purposes.

Sunk Cost

Costs that have already been incurred and cannot be recovered or altered by future actions.