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Describes the agency problem that results in a demand

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Reference no: EM132621631

Problem 1: What best describes the 'agency problem' that results in a demand for audits?

Option A) Shareholders act in their own interests and not in the interests of the company

Option B) Banks have different information expectations to shareholders

Option C) Managers' act first in the interests of shareholders to the detriment of creditors

Option D) Managers act in their own interests rather than the interests of shareholders.

Reference no: EM132621631

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