The key aspect of the agency relationship for the corporate form of business

11. The key aspect of the agency relationship for the corporate form of business is that:
A: the firm’s
owners will always act in the best interests of the managers
B: the managers will always act in the best interests of the firm’s owners
C: with their management contracts the managers have the incentive to act in the best inter-ests of the shareholders
D: the managers have different incentives from the shareholders.

 
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