CIMAPRA17-BA4-1 Exam - Topic 3 Question 53 Discussion
Agency theory is often cited as an explanation for the development of corporate governance Which TWO of the following statements are correct?
C) Agency theory assumes that the goals of the managers of the company are different from the owners of the company and D) Agency theory explains the issues which arise from the separation between the owners of the company and those who control it
A) Agency theory assumes that the goals of the managers of the company are the same as the owners of the company
B) Agency theory requires that the managers of the company act in the interests of the owners of the company
E) Agency theory defines the problems that arise from the dependency of an organisation on resources
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