In: Finance
Which of the following statements is TRUE?
Multiple Choice
The goal of a corporate financial manager is to maximize the wealth of the firm’s lenders.
A distinct feature of sole proprietorship is the separation of ownership and management.
The goal of a corporate financial manager is to maximize the firm’s profit.
Agency problem is the conflict of interest between a firm’s principal and its agent.
Option D is correct.
Agency problem is the conflict of interest between a firm’s principal and its agent.
Firm's principal are the shareholders of the company and the agents are the managers of the company.