Which of the Following Is NOT an Example of an Agency

question 26

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)All of the above are agency costs.

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Definitions:

Aristotle

An ancient Greek philosopher and polymath during the Classical period in Ancient Greece, whose works covered a wide range of subjects including physics, metaphysics, poetry, theater, music, logic, rhetoric, linguistics, politics, government, ethics, biology, and zoology.

Human Nature

The inherent characteristics and behaviors that every human being shares.

Virtue

A quality considered morally good or desirable in a person.

Kohlberg Construct

A theoretical framework concerning the stages of moral development formulated by psychologist Lawrence Kohlberg.