Which One of the Following Statements Accurately Describes a Key

question 37

Multiple Choice

Which one of the following statements accurately describes a key premise of agency theory?

• A)By protecting stockholder interests,all the interests of society are served.
• B)Stockholders do not have a clear interest in greater returns.
• C)Managers are self-interested and willing to sacrifice those self-interests for others (particularly stockholders.
• D)Employees monitor how agents handle company strategies.
• E)Newspapers report how agents manage company strategies.