Which of the following is not true regarding the agency theory?
A) It takes a long-term perspective based on continuous improvement.
B) It is based on an economic perspective.
C) It propounds the belief that people are self-interested and opportunistic.
D) It suggests that information may be concealed to advance self-interests.

Question

Quizplus · Accepted Answer

Agency theory primarily focuses on the conflicts between principals and agents, where agents may act in their own self-interest rather than in the best interests of the principals. It does not inherently take a long-term perspective based on continuous improvement; rather, it examines the issues arising from the separation of ownership and control, and the mechanisms to mitigate these issues.

Which of the Following Is Not True Regarding the Agency