Which of the Following Statements Is Not Derived from the Agency

question 18

Multiple Choice

Which of the following statements is not derived from the agency theory?

• A) Entities employ managers to conduct business on their behalf and to negotiate contracts with other parties.
• B) An entity is the centre of contractual relationships, with different parties having rights and responsibilities under the contracts.
• C) Managers will not always act in the best interest of shareholders.
• D) There are costs incurred in order to control agent's behaviour.

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Definitions:

Discover

A financial services company known for issuing credit cards and operating a payment network.

Customer Interaction

The communication and engagement between a business and its customers across various touchpoints.

Building Connections

The act of establishing relationships or networks with others, often in professional or business contexts, to achieve mutual benefits.

Mobile App

A software application developed specifically for use on small, wireless computing devices, such as smartphones and tablets, aside from computers.