CFA Practice Question

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CFA Practice Question

The agency theory can be applied in the relationships between ______.

I. stockholders and senior management
II. top management and lower levels of management
III. stockholders and debtholders
Correct Answer: I and II

II: An agency relation is established whenever top management delegates authority to lower levels of management.

User Contributed Comments 1

User Comment
zriddle Its all about delegating authority
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