Which of the Following Is NOT an Example of an Agency

question 51

Multiple Choice

Which of the following is NOT an example of an agency cost?

• A)Paying an accounting firm to audit your financial statements
• B)Paying an insurance company to assure that building codes have been met for new construction
• C)Paying a landscaping firm to maintain your firm's grounds
• D)The cost of designing contracts that satisfy creditors that their concerns will be met

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Definitions:

Spending Declines

A reduction in the amount of money spent by consumers, businesses, or governments, often indicative of economic downturns or budget tightening.

Pure Competition

A market structure where many firms offer a homogenous product, and no single company can influence the market price or terms of sale.