All of the following statements about agency problems are true EXCEPT

All of the following statements about agency problems are true EXCEPT

A) Agency problems result from the separation of management and the ownership of a firm.
B) Agency problems interfere with the goal of maximizing shareholder value.
C) Agency costs are paid by the managers who do not act in the shareholders’ best interest.
D) The root cause of agency problems is conflicts of interest.

ANSWER

C