Because Agents May Not Set the Same Goals and Objectives

question 13

Multiple Choice

Because agents may not set the same goals and objectives as principals, organisations may experience which of the following general agency costs?

• A) I and III only
• B) II and III only
• C) III only
• D) I, II, and III

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Definitions:

Key Management Personnel

Those persons having authority and responsibility for planning, directing, and controlling the activities of the entity, directly or indirectly.

AASB 10/IFRS 10

An accounting standard that sets out the principles for the presentation and preparation of consolidated financial statements when an entity controls one or more other entities.

Ownership of Voting Rights

Ownership of voting rights refers to holding the power to vote on corporate matters, typically arising from the ownership of a company's shares.