Which of the following statements best represents the “Agency Problem”

Which of the following statements best represents the “Agency Problem”?

A) The agency problem may interfere with the implementation of maximizing shareholder
wealth.
B) Managers might attempt to benefit themselves in terms of salary and perquisites at the
expense of shareholders.
C) The agency problem results from the separation of management and the ownership of the
firm.
D) all of the above

ANSWER

D