Agency Costs Arise When ________

question 90

Multiple Choice

Agency costs arise when ________.

• A) there are high labor costs
• B) input costs are higher than interest costs
• C) interest costs exceed dividend payments
• D) conflicts of interest exist between stakeholders

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Definitions:

Mutually Exclusive

Events that cannot happen simultaneously.

Simple Events

In probability, a simple event is a single outcome within a sample space, not composed of other events.

Probability

A measure of the likelihood that an event will occur, ranging from 0 (impossibility) to 1 (certainty).

Combinations

The selection of items from a collection such that the order of selection does not matter.