Which One of the Following Is an Agency Cost

question 4

Multiple Choice

Which one of the following is an agency cost?

• A)accepting an investment opportunity that will add value to the firm
• B)increasing the quarterly dividend
• C)investing in a new project that creates firm value
• D)hiring outside accountants to audit the company's financial statements
• E)closing a division of the firm that is operating at a loss

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Definitions:

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A state of contentment and satisfaction experienced within a marriage, often influenced by factors such as communication, mutual respect, and shared values.

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The practice of dividing household chores and responsibilities equally or equitably among members of a household.

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The social and economic conditions that influence patterns of marital choice within a specific geographical area.

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Scholars in sociology and anthropology who analyze social institutions and structures based on the functions they perform in a society.