Which of the following is NOT true regarding agency costs and agency problems? Group of answer choices A)The cost of video cameras installed in stores to limit shirking by managers is a direct agency corporation B)A number of features of a modern economy moderate the potential impact of agency costs. C)A store manager purchases a corporate jet without authorization. This is an example of a direct agency cost. D)The potential for agency problems are larger in a corporation than in a sole proprietorship.
Which of the following is NOT true regarding agency costs and agency problems? Group of answer choices A)The cost of video cameras installed in stores to limit shirking by managers is a direct agency corporation B)A number of features of a modern economy moderate the potential impact of agency costs. C)A store manager purchases a corporate jet without authorization. This is an example of a direct agency cost. D)The potential for agency problems are larger in a corporation than in a sole proprietorship.
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Which of the following is NOT true regarding agency costs and agency problems?
Group of answer choices
A)The cost of video cameras installed in stores to limit shirking by managers is a direct agency corporation
B)A number of features of a modern economy moderate the potential impact of agency costs.
C)A store manager purchases a corporate jet without authorization. This is an example of a direct agency cost.
D)The potential for agency problems are larger in a corporation than in a sole proprietorship.
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