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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)
  • A
    7% (2)
  • B
    3% (1)
  • C
    73% (22)
  • D
    17% (5)

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