Which of the Following Is an Example of an Agency

question 4

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
• E)managers using cash to increase dividends

---

Definitions:

Annual Fixed Cost

Fixed costs that a business incurs over a year regardless of its activity level, such as rent, salaries, or insurance.

Technology Use

The application of scientific knowledge for practical purposes, especially in industry and daily life.

Time Efficiency

Refers to the effective use of time to maximize productivity or achieve a task within the shortest possible duration.

Account Analysis

The process of evaluating the sales potential and profitability of individual customer accounts.