Which of the Following Is Not an Example of an Agency

question 7

Multiple Choice

Which of the following is not an example of an agency cost?

• A) a lavish dinner or trip.
• B) a missed investment opportunity.
• C) a cost that results from a conflict of interest between the agent and the principal.
• D) the cost of a new piece of equipment.

---

Definitions:

Newsletters

Periodic publications distributed to a specific audience to inform, educate, or entertain about recent developments, news, or interests pertaining to a group or organization.

Formal

Characterized by strict or conventional forms and manners in language, appearance, or events.

Letter

A written or printed message, usually of a personal nature, intended to communicate between individuals or organizations.

Memo

A written message, usually in a business setting, intended to communicate information or instructions within an organization.