Agency Problems Can Least Be Controlled By

question 13

Multiple Choice

Agency problems can least be controlled by:

• A) establishing good internal controls and procedures.
• B) designing compensation packages that align manager's goals with those of the shareholders.
• C) good systems of corporate governance.
• D) electing senior managers to the board of directors.

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Definitions:

Credit Reports

Documents that contain detailed information about an individual's credit history, including loans, credit cards, and payment history.

Closed-end Credit

A type of loan where a consumer borrows a specific amount of money and agrees to repay it over a fixed period with scheduled payments.

Financing

The act of providing funds for business activities, making purchases, or investing.

Interest Rate

The percentage at which interest is charged or paid on borrowed capital or savings, indicating the cost of borrowing or the reward for saving.