Agency Costs Include All of the Following EXCEPT

question 98

Multiple Choice

Agency costs include all of the following EXCEPT

• A) management reports to stockholders.
• B) performance incentives paid to managers.
• C) the cost of monitoring management behavior.
• D) purchasing insurance against management misconduct.

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Definitions:

Instantaneous Obedience

The immediate compliance with commands or orders without hesitation or question, often emphasized in strict hierarchical organizations.

Self-Control

The ability to manage one's emotions, desires, or actions, especially in difficult situations or to achieve long-term goals.

Political Skills

The ability to understand and influence others in a social or professional setup for the achievement of personal or organizational objectives.

Organizational Goals

The objectives or targets that an organization aims to achieve, which guide its operations and strategic direction.