CIMA Fundamentals of Business Economics BA1 Question # 76 Topic 8 Discussion

CIMA Fundamentals of Business Economics BA1 Question # 76 Topic 8 Discussion

BA1 Exam Topic 8 Question 76 Discussion:
Question #: 76
Topic #: 8

Which ONE of the following statements best defines the principal-agent problem in a company?


A.

A lack of consultation of shareholders by directors


B.

Personal goals are pursued by directors that are inconsistent with the welfare of shareholders


C.

Shareholders don't always know what management is doing


D.

Directors get paid too much for the job they do


Get Premium BA1 Questions

Contribute your Thoughts:


Chosen Answer:
This is a voting comment (?). It is better to Upvote an existing comment if you don't have anything to add.