Why should I choose AnalystNotes?
Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.
Basic Question 1 of 9
In the principal-agent framework, the ultimate principals are ______.
B. the board of directors
C. shareholders
A. managers
B. the board of directors
C. shareholders
User Contributed Comments 1
| User | Comment |
|---|---|
| Antoinepo | Shareholders are the principal of the board of directors which are the principal of managers which are the principal of typical agent. |
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
describe the principal-agent relationship and conflicts that may arise between stakeholder groups
CFA® 2025 Level I Curriculum, Volume 2, Module 3.