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Agency theory explains manager's behavior. Which one is false? The agmizy is detined as a
rebationship by consent between two partieh whereby one party agreet to act po behalf of the
other Agency theory aswimes that a confict of interest texists between the owners of a firm and
the maragnts Cenerally anency coess of a firm are not controlied by firm itself Financial
reporting should provide the information for the potential agency costr of the firm

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  • 1. Agency theory explains manager's behavior. Which one is false? The agmizy is detined as a rebationship by consent between two partieh whereby one party agreet to act po behalf of the other Agency theory aswimes that a confict of interest texists between the owners of a firm and the maragnts Cenerally anency coess of a firm are not controlied by firm itself Financial reporting should provide the information for the potential agency costr of the firm