Which of the Following Is an Example of an Indirect

question 42

Multiple Choice

Which of the following is an example of an indirect agency cost?

• A)A company buys the latest computer equipment for its employees.
• B)Senior management use company money to pay their children's education.
• C)Managers can use the company float plane to fly to their cottages on weekends.
• D)Managers may take risky projects when the company is not doing well.

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Definitions:

Capital Equipment

Long-lasting tools, machinery, and infrastructure utilized in the production of goods and services.

Inventory Changes

Adjustments in the quantity or value of goods that a company has in stock, which can affect financial and operational performance.

Personal Income

The total income received by individuals from all sources, including wages, dividends, and government benefits.

Corporate Income Taxes

Taxes imposed on the net income of corporations by the government.