CIMA Fundamentals of Business Economics BA1 Question # 67 Topic 7 Discussion

CIMA Fundamentals of Business Economics BA1 Question # 67 Topic 7 Discussion

BA1 Exam Topic 7 Question 67 Discussion:
Question #: 67
Topic #: 7

Which ONE of the following is NOT a symptom of the principal-agent problem in company XYZ?


A.

The pay of the directors of XYZ is not related to the company's financial performance


B.

XYZ loses money following a risky investment in a new line of business


C.

The family of the Chief Executive of XYZ use the company jet for shopping trips


D.

XYZ's Board conceals information about losses from shareholders


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