Why should I choose AnalystNotes?

Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.

Find out more

Basic Question 1 of 5

In the principal-agent framework, the ultimate principals are ______.

A. managers
B. the board of directors
C. shareholders
Check Answer Next Q Print

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.
You need to log in first to add your comment.
Your review questions and global ranking system were so helpful.
Lina

Lina

Learning Outcome Statements

describe the principal-agent relationship and conflicts that may arise between stakeholder groups;

CFA® 2024 Level I Curriculum, Volume 3, Module 29.