Separating the Functions of Principals and Agents Is Likely to Result

question 46

Multiple Choice

Separating the functions of principals and agents is likely to result in

• A)immobility of financial capital.
• B)diversification of investment risk.
• C)reduction in agency costs.
• D)better goal congruence.
• E)information symmetry.

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Definitions:

Contest a Will

A legal challenge made against the validity of a will by a potential heir or beneficiary.

Holographic Will

A will entirely handwritten and signed by the testator, often not witnessed, but recognized as valid in some jurisdictions.

Attested

Verified or certified as true, accurate, or genuine by a witness or authority.

Codicil

A formal document used to supplement or change an existing will.