Which of the following is not an example of a problem explained by agency theory?

a) a manager encounters a conflict of interest between their responsibilities to shareholders and their responsibilities to employees.
b)a manager protects her own job rather than the shareholder's wealth.
c) a manager takes few risks to ensure steady dividends
d) a manager fires underperforming employees

I am thinking it might be d

3 answers

I agree.

https://www.investopedia.com/terms/a/agencytheory.asp

Thank you, Ms. Sue!

You're welcome.