In Agency Theory,the Owners of the Business Are Referred to as ________,And

question 23

Multiple Choice

In agency theory,the owners of the business are referred to as ________,and the managers are referred to as ________.

• A)bondholders,principals
• B)stockholders,bondholders
• C)agents,principals
• D)principals,agents

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Definitions:

Monthly Sales Volume

The total quantity of products or services sold by a company in a month.

Fixed Manufacturing Cost

Costs that do not vary with the level of production or sales, such as rent for factory premises, salaries of permanent staff, and depreciation of factory equipment.

Monthly Production Volume

The total count of units produced by a company in a month, reflecting the scale of its manufacturing operations.

Overhead Costs

Overhead costs are expenses related to the operation of a business that cannot be directly attributed to a specific product or service, such as rent and utilities.