In Agency Theory, the _____ Seeks to Direct the Behavior

question 97

Multiple Choice

In agency theory, the _____ seeks to direct the behavior of the _____.

• A)owner; principal
• B)agent; principal
• C)buyer; agent
• D)agent; owner
• E)principal; agent

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Definitions:

Standard & Poor's 500

An American stock market index based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ.

Stock Index

A statistical measure that shows changes in the stock market by tracking selected stocks' prices.

Price Appreciation

The increase in value of an asset or investment over time.

Portfolio

A portfolio is a collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including closed-end funds and exchange traded funds (ETFs).