All of the Following Statements About Agency Problems Are True

question 122

Multiple Choice

All of the following statements about agency problems are true EXCEPT

• A) Agency problems interfere with the goal of maximizing shareholder value.
• B) Agency costs are paid by the managers who do not act in the shareholders' best interest.
• C) Agency problems result from the separation of management and the ownership of a firm.
• D) The root cause of agency problems is conflicts of interest.

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Definitions:

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for.