Answered: Agency problems would be less likely to…

Business

Accounting

Agency problems would be less likely to exist in a: sole proprietorship. partnership. private company. public company.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter1: The Role And Objective Of Financial Management

Section: Chapter Questions

Problem 18QTD

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Question

Agency problems would be less likely to exist in a:

		sole proprietorship.
		partnership.
		private company.
		public company.

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

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