The ways to address agency costs include: A. Gathering information about the agent's characteristics before hiring...
The ways to address agency costs include:
A. Gathering information about the agent's characteristics before hiring
B. Gathering information about the agent's actions once hired
C. Incentivizing agents to work on behalf of principals
D. All of these
Homework Answers
Option D
Explanation: An agent is a party that works for a principle for the self-interest of the principle. All the mentioned costs are part of agency cost.
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The ways to address agency costs include:
A. Gathering information about the agent's characteristics
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