Agency costs include all of the following, EXCEPT _____.
A) expenditures to monitor management's actions
B) providing stock as part of management's compensation expenditures to structure the organization
C) flotation costs
D) bonding expenditures

Question

Quizplus · Accepted Answer

All the other options (A, B, and D) are examples of agency costs. Flotation costs are not considered agency costs as they are expenses incurred when issuing new securities.

Agency Costs Include All of the Following, EXCEPT _____