- CFA Exams
- CFA Level I Exam
- Topic 4. Corporate Issuers
- Learning Module 29. Introduction to Corporate Governance and Other ESG Considerations
- Subject 3. Principal-Agent and Other Relationships in Corporate Governance
CFA Practice Question
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
Correct Answer: C
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. |