Which of the following statement is incorrect? a. An agency relationship is developed when the principal hires another party (agent) to perform some services on his behalf. b. Shareholders and managers do have an agency relationship c. Sustainable finance encourages firms to adopt UNSDGS d. When there is a conflict between the shareholders and the managers, it is called an agency problem e. Shareholders are the real managers of a business

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Which of the following statement is
incorrect?
a. An agency relationship is developed
when the principal hires another party
(agent) to perform some services on his
behalf.
b. Shareholders and managers do have an
agency relationship
c. Sustainable finance encourages firms to
adopt UNSDGS
d. When there is a conflict between the
shareholders and the managers, it is called
an agency problem e. Shareholders are the
real managers of a business
Transcribed Image Text:Which of the following statement is incorrect? a. An agency relationship is developed when the principal hires another party (agent) to perform some services on his behalf. b. Shareholders and managers do have an agency relationship c. Sustainable finance encourages firms to adopt UNSDGS d. When there is a conflict between the shareholders and the managers, it is called an agency problem e. Shareholders are the real managers of a business
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