In the context of the agency relationship managers

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Reference no: EM131133257

Select as choices all of the following that you believe depict the 'agency' relationship inside the corporation.
Note: A correct answer requires that you check ALL that apply.

  • In the context of the agency relationship managers are the principals.
  • In the context of the agency relationship shareholders are the principals.
  • The goal of shareholder wealth maximization often leads to agency costs.
  • The compensation plan has many advantages but using it to reduce agency costs is NOT one of these advantages.
  • One type of agency costs are lost opportunities caused by conflicts too difficult to resolve.
  • The goals of the managers may not always align themselves with the goals of the shareholders.
  • One of the goals of the study of modern corporate finance is to maximize agency costs.

Reference no: EM131133257

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