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Basic Question 1 of 9
In the principal-agent framework, the ultimate principals are ______.
B. the board of directors
C. shareholders
A. managers
B. the board of directors
C. shareholders
User Contributed Comments 1
| User | Comment |
|---|---|
| Antoinepo | Shareholders are the principal of the board of directors which are the principal of managers which are the principal of typical agent. |
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Learning Outcome Statements
describe the principal-agent relationship and conflicts that may arise between stakeholder groups
CFA® 2025 Level I Curriculum, Volume 2, Module 3.