Which is the best example of direct agency costs

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Problem 1: Which of the following is the best example of direct agency costs.

a. Corporate expenditure that benefits management but costs the shareholders, and expenses that arises from the need to monitor shareholder actions.

b. Corporate expenditure that benefits shareholders but costs the executives, and expenses that arises from the need to monitor management actions.

c. Corporate expenditure that benefits management but costs the shareholders, and expenses that arises from the need to monitor management actions.

d. Corporate expenditures on production quality control, and expenses that arise from the need to monitor management actions.

e. Corporate expenditures on capital projects, and monitoring working capital management.

Problem 2: When you engage a mortgage broker to find the best mortgage rates, this is an example of a/an:

a. Intermediary relationship.

b. Co-dependent relationship.

c. Contractual relationship.

d. Agency relationship.

e. Principal relationship.

Reference no: EM133012309

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