Which of the following problems arises within owner-manager agency relationships?
$$\begin{array} { l l l }
\text { I. } \text { Risk aversion } & \text { III. Clan delution } \
\text { II. Asset substitution } & \text { IV. } \text { Dividend retention }
\end{array}$$
A) I and III.
B) I and IV.
C) II and III.
D) II and IV.

Question

Which of the following problems arises within owner-manager agency relationships?
$$\begin{array} { l l l } 
\text { I. }  \text { Risk aversion } & \text { III. Clan delution } \
\text { II. Asset substitution } & \text { IV. } \text { Dividend retention }
\end{array}$$
A) I and III.
B) I and IV.
C) II and III.
D) II and IV.

Quizplus · Accepted Answer

In owner-manager agency relationships, managers may be risk-averse (I) to protect their jobs, and they might retain dividends (IV) to reinvest in the company rather than distribute them to shareholders.

Which of the Following Problems Arises Within Owner-Manager Agency Relationships