In Which of the Following Organizations Would the Existence of Agency

question 17

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:

Accounts Receivable

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

Unsecured Creditors

Creditors who have extended credit without securing collateral, putting them at greater risk of loss if the debtor defaults.

Total Assets

The sum of all resources owned by an entity, including both tangible and intangible items, that have value and can be used to meet liabilities.