AFP
CTP · Question #175
(Topic 2) The "agency problem" refers to:
The correct answer is C. stockholders who allow management to take actions that will benefit management. See the full explanation below for the reasoning.
Question
- (Topic 2)
The “agency problem” refers to:
Options
- Amanagement's use of a fiduciary agent for stockholders.
- Ba large and active institutional investor base acting on behalf of individual investors.
- Cstockholders who allow management to take actions that will benefit management.
- Dthe internal audit function reporting to the audit committee of the board instead of to
How the community answered
(30 responses)- A7% (2)
- B3% (1)
- C73% (22)
- D17% (5)
Community Discussion
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