- CFA Exams
- CFA Level I Exam
- Topic 3. Corporate Issuers
- Learning Module 3. Corporate Governance: Conflicts, Mechanisms, Risks, and Benefits
- Subject 1. Shareholder Conflicts and Management
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. |