Separating the functions of principals and agents is likely to result in
A)immobility of financial capital.
B)diversification of investment risk.
C)reduction in agency costs.
D)better goal congruence.
E)information symmetry.

Question

Quizplus · Accepted Answer

Separating the functions of principals and agents allows for diversification of investment risk, as agents can manage investments on behalf of multiple principals, spreading risk across various assets.

Separating the Functions of Principals and Agents Is Likely to Result