In Which of the Following Organizations Would the Existence of Agency

question 89

Multiple Choice

In which of the following organizations would the existence of agency problems be least likely?

• A) a sole proprietorship
• B) a partnership
• C) a corporation
• D) a closely held corporation

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Definitions:

Legal Limit

The maximum or minimum boundary set by law, such as for speed on roads, alcohol consumption, or transaction amounts.

Foreign-Produced Shoes

Shoes that are manufactured outside of one's home country.

Tariff

A tax imposed on imported goods, usually to protect domestic industries or to generate revenue.

Economic Efficiency

A condition in which resources are allocated in such a way that maximizes the net benefit to society, ensuring that goods and services are produced and distributed in the most cost-effective manner.