CIMA Exam CIMAPRA17-BA4-1 Topic 3 Question 53 Discussion

Actual exam question for CIMA's CIMAPRA17-BA4-1 exam

Question #: 53
Topic #: 3

Agency theory is often cited as an explanation for the development of corporate governance Which TWO of the following statements are correct?

AAgency theory assumes that the goals of the managers of the company are the same as the owners of the company

BAgency theory requires that the managers of the company act in the interests of the owners of the company

CAgency theory assumes that the goals of the managers of the company are different from the owners of the company

DAgency theory explains the issues which arise from the separation between the owners of the company and those who control it

EAgency theory defines the problems that arise from the dependency of an organisation on resources

Show Suggested Answer

Suggested Answer: C, D

by Fannie at Jun 19, 2022, 02:58 AM

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