Question

lapter Questions e: 0 of 1 pt 4 of 10 (0 complete) HW Sco blem 1.LO4.20 (static) ch of the following is not an example of an agency problem? ect the best choice below.) A. Your general practioner recommends a specialist with a tremor to perform your surgery B. The CEO has a museum constructed to house the oil company's collection of french impressionist paintings C. A book keeper hired from a temp agency mis-keys several large transactions. . A stockbroker picks a mutual fund with a high-expense ratio for an investor E. The General Manager trades an outfielder batting 450 in exchange for his wife's nephevw

Answer 1

AGENCY PROBLEM means that those who are managing the company are using their power and authority for their own sake and not for the benefit of shareholders

so as per definition, only one option is valid and it is "C". In all other cases, the agent who is doctor, mutual fund manager is doing good for himself and not for their clients.

Answer : C : (THUMBS UP PLEASE)