Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / Examples of agency costs incurred by shareholders to minimize agency problems are: A) Expenditures associated with independent auditing

Examples of agency costs incurred by shareholders to minimize agency problems are: A) Expenditures associated with independent auditing

Marketing

Examples of agency costs incurred by shareholders to minimize agency problems are:

A) Expenditures associated with independent auditing.

B) Expenditures associated with SEC approval.

C) Expenditures associated with monitoring management's actions

D) Expenditures associated with inventory control.

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

The answer is C.

In practice, managers would tend to focus on the short-run performance, which will be evaluated to determine the efficiency in management. In the other hand, business owners would expect to increase the value of their investment in the long-run, which meant the concentration of the short-run might cost the business future. With that being said, the shareholders would spend additional funds to monitor managers' actions, which will secure their long-term interests.