Elance Exams Answers PDF file

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Download PDF file of elance Zoho Creator Exam Answers

Which of the following statements about agency problems is TRUE?

Bond covenants are used to motivate managers to act in the interests of shareholders.
Agency conflicts are common.
The agency conflict between bondholders and stockholders cannot exist if managers are attempting to maximize share price.
As long as managers stay within the law, there are no effective controls that stockholders can implement to control managerial actions.
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