In the context of the agency relationship managers

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Reference no: EM131133257

Select as choices all of the following that you believe depict the 'agency' relationship inside the corporation.
Note: A correct answer requires that you check ALL that apply.

In the context of the agency relationship managers are the principals.
In the context of the agency relationship shareholders are the principals.
The goal of shareholder wealth maximization often leads to agency costs.
The compensation plan has many advantages but using it to reduce agency costs is NOT one of these advantages.
One type of agency costs are lost opportunities caused by conflicts too difficult to resolve.
The goals of the managers may not always align themselves with the goals of the shareholders.
One of the goals of the study of modern corporate finance is to maximize agency costs.

Reference no: EM131133257

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