Which of the following statements is correct?
A) A good goal for a firm's management is maximization of expected EPS.
B) Like corporations, the board of directors for an income trust supervises the operating entity on behalf of unitholders.
C) There is legal obligation to pay cash distributions for income trusts.
D) Agency conflicts easily arise between shareholders and managers.

Question

Quizplus · Accepted Answer

Agency conflicts arise when the interests of shareholders and managers diverge, leading to potential conflicts in decision-making.

Which of the Following Statements Is Correct