Register
Which of the following is an example of agency​ cost? A. payment of income tax B. costs incurred for setting up an agency C. failure to make an investment that would make shareholders wealthier D. payment
143k views
1 vote
Which of the following is an example of agency​ cost?

A. payment of income tax
B. costs incurred for setting up an agency
C. failure to make an investment that would make shareholders wealthier
D. payment of interest

User Nlinscott
by
5.1k points

1 Answer

6 votes

Answer:

C

Step-by-step explanation:

Agency costs occur when a company's management or "agent" places his own personal financial interests above those of the shareholder.

This may include the usage of the company resources for their own benefit rather than increase their shareholders wealth

User Sarangkkl
by
5.8k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

6.0m questions

7.8m answers

Other Questions

What are some ways you can save on car insurance?
_____ reminds customers and clients that they made a good choice in selecting a company with which to do business, or it reminds them of the good qualities of their purchase.​
Demonstrate how binomial nomenclature is related to classification systems by identifying the genus name and the specific name of the domestic cat felis catus
The dark printed words on the page of a book are easily read because they are printed on a light ground. this is an example of the principle of ____________.
On august 1 the darius co. purchased a photocopy machine for $8,000. the estimated annual depreciation on the machine is $1,680. if the company prepares annual financial statements on december 31, the
Link Copied!