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:

Anti-Federalist

Opponents of the ratification of the U.S. Constitution in the late 18th century, favoring a weaker central government and greater state autonomy.

Tariff Protection

Economic policy of imposing duties on imports to protect domestic industries from foreign competition.

Stronger National Government

Advocacy for or the development of increased powers and responsibilities at the national level, often to improve governance, address national issues, and strengthen national unity.