Which of the Following Statements About Agency Theory Is NOT

question 41

Multiple Choice

Which of the following statements about agency theory is NOT true?

• A) Agency theory tends to focus on the stewardship role of accounting information.
• B) Agency theory develops ideas about how the agent can be induced to act properly.
• C) Conflict of interest is unfavourable and to be avoided at all costs.
• D) For the agent,effort is costly and therefore to be minimised.

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Definitions:

Battle of Valmy

A significant battle during the French Revolutionary Wars, fought in 1792, which marked the first major victory of the French revolutionary army over the invading Prussian and Austrian forces.

Prussian

Pertaining to Prussia, a historically significant state in Europe, known for its powerful military and influential role in German and European affairs.

Austrian Armies

Refers to the military forces of Austria, historically significant for their roles in various European conflicts.

Revolutionary

A term referring to a dramatic and wide-reaching change in conditions, attitudes, or operation, especially in social and political contexts.