Practice mode Finance

Agency theory suggests that managers (the agents), especially in large publicly owned firms, may pursue objectives different from those of which group?

Correct answer D. Shareholders

Explanation

In agency theory, shareholders are the principals who appoint managers to run the firm, and conflicts arise when managers favour their own interests over shareholder wealth.

Report a problem

Answer checked How we write and check questions

Tip: press A, B, C or D to answer, and N for the next question.

Advertisement

Have a question about this answer?

Your email address will not be published. Required fields are marked *

Links and website addresses are not allowed in comments.