Which One of the Following Is an Agency Cost

question 4

Multiple Choice

Which one of the following is an agency cost?

• A)accepting an investment opportunity that will add value to the firm
• B)increasing the quarterly dividend
• C)investing in a new project that creates firm value
• D)hiring outside accountants to audit the company's financial statements
• E)closing a division of the firm that is operating at a loss

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Definitions:

Paralegal Professionalism

The adherence to ethical standards, confidentiality, and continued education that paralegals must maintain to support attorneys and the legal process effectively.

Attributes

Characteristics or features that are inherent to or associated with a person, object, or concept.

Legal Advice

Guidance provided by a qualified legal professional regarding the interpretation of the law or the legal aspects of a situation.

Paralegal

A person trained in subsidiary legal matters but not fully qualified as a lawyer, who assists attorneys in their legal work.