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.

---

Definitions:

Glucose

A basic form of sugar that serves as a crucial source of energy for living beings and a fundamental element of numerous carbohydrates.

Cyclic Hemiacetal

A cyclic organic compound formed from the reaction of an alcohol with an aldehyde or ketone, characterized by a carbon atom bonded to an oxygen (in hydroxy group), another oxygen (in ether group), a hydrogen, and an alkyl or aryl group.

Erythro

A descriptor in stereochemistry, referring to molecules in which two substituents are on the same side in a Fischer projection.

Fischer Projection

A method for representing the three-dimensional configuration of molecules on a two-dimensional plane, used especially for carbohydrates.