Which of the Following Is an Example of an Agency

question 45

Multiple Choice

Which of the following is an example of an agency problem?

• A)Managers not working as diligently if they are not the sole owner of the business.
• B)The board of directors firing an incompetent manager.
• C)The manager owning a great deal of stock in the company.
• D)A corporate raider attempting to purchase the company.

---

Definitions:

Odometer

A device used in vehicles to measure and display the total distance the vehicle has traveled.

Rescind

To revoke, cancel, or repeal a contract, agreement, or law.

Agreement

A mutual understanding or arrangement between two or more parties, typically involving a contract or commitment.

Altered

Changed in form or character, typically in a way that improves or modifies the original.