Which of the Following Is an Example of Agency Cost

question 81

Multiple Choice

Which of the following is an example of agency cost?

• A)costs incurred for setting up an agency
• B)failure to make an investment that would make shareholders wealthier
• C)payment of income tax
• D)payment of interest

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Definitions:

Attracting

The process of drawing interest or causing someone or something to be drawn in, often used in the context of attracting talent or customers.

Retaining

The process of keeping something in possession or continuing to have something, such as employees or information.

Motivating

The process of encouraging or stimulating individuals or groups to achieve specific goals or perform at a higher level through various means, such as incentives, support, or recognition.

Lump Sum

A single payment made at a particular time, as opposed to smaller installments made over a period.