CIMA Exam CIMAPRA17-BA1-1 Topic 1 Question 92 Discussion

Actual exam question for CIMA's CIMAPRA17-BA1-1 exam

Question #: 92
Topic #: 1

[All CIMAPRA17-BA1-1 Questions]

Which ONE of the following is NOT a symptom of the principal-agent problem in company XYZ?

AThe pay of the directors of XYZ is not related to the company's financial performance

BXYZ loses money following a risky investment in a new line of business

CThe family of the Chief Executive of XYZ use the company jet for shopping trips

DXYZ's Board conceals information about losses from shareholders

Show Suggested Answer

Suggested Answer: C

by Taryn at Jul 10, 2024, 11:18 PM

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Alonso

4 days ago

I think the answer is B. The principal-agent problem is about misaligned incentives between the owners and the managers, not about the company's financial performance.

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Dawne

6 days ago

I'm not sure, but I think the answer is C.

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Tarra

9 days ago

I disagree, I believe the answer is D.

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Lorriane

10 days ago

I think the answer is B.

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