In the Economic Field of Agency Theory,which One of the Following

question 5

Multiple Choice

In the economic field of agency theory,which one of the following is viewed as an agent with the principals who are most importantly the firm's shareholders?

• A) suppliers
• B) employees
• C) managers
• D) attorneys

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Definitions:

Proxy Fights

Strategies employed by shareholders to influence company management and policies by voting on corporate issues, often seen in contests for control of the board.

Nonfinancial Businesses

Companies whose primary activities involve the production or supply of goods and services, rather than financial transactions and investments.

Real Asset(s)

Physical or tangible assets that have intrinsic value such as real estate, commodities, and natural resources.

Agency Problem

Conflicts of interest among stockholders, bondholders, and managers.