Separating the Functions of Principals and Agents Is Likely to Result

question 46

Multiple Choice

Separating the functions of principals and agents is likely to result in

• A)immobility of financial capital.
• B)diversification of investment risk.
• C)reduction in agency costs.
• D)better goal congruence.
• E)information symmetry.

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Definitions:

Spoken Words

Oral communication or utterances used to express ideas, emotions, or intentions.

Communication Style

The characteristic way in which an individual expresses and exchanges information with others.

Culture

A system of shared beliefs, values, customs, behaviors, and artifacts that members of society use to cope with their world and with one another.

Western Cultures

Refers to the societies and cultures found in Europe, North America, and other regions influenced by the historical developments of Western Europe.