The separation of ownership from management creates a situation in which: a. Management may act in its own best interests rather than those of the creditors b. Management may act in its own best interests rather than those of the debtors c. Management may act in its own best interests rather than those of the shareholders d. Management may act in its own best interests rather than those of the employees

The separation of ownership from management creates a situation in which: a. Management may act in its own best interests rather than those of the creditors b. Management may act in its own best interests rather than those of the debtors c. Management may act in its own best interests rather than those of the shareholders d. Management may act in its own best interests rather than those of the employees

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter10: Corporate Governance

Section: Chapter Questions

Problem 4Q

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3- The separation of ownership from management creates a situation in which: a. Management may act in its own best interests rather than those of the shareholders b. Management may act in its own best interests rather than those of the employees c. Management may act in its own best interests rather than those of the creditors d. Management may act in its own best interests rather than those of the debtors
Agency cost arise from the senior management's inability to control shareholder true or False. State
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