Find Online Tutors for Homework Help

11 The key aspect of the agency relationship for the corporate form of business is that A the firm’s

Question

11. The key aspect of the agency relationship for the corporate form of business is that:

A: the firm’s

owners will always act in the best interests of the managers

B: the managers will always act in the best interests of the firm’s owners

C: with their management contracts the managers have the incentive to act in the best inter-ests of the shareholders

D: the managers have different incentives from the shareholders.

Finance