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Basic Question 2 of 8

In the principal-agent framework, the ultimate principals are ______.

A. managers
B. the board of directors
C. shareholders
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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.
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Colin Sampaleanu

Colin Sampaleanu

Learning Outcome Statements

describe global variations in ownership structures and the possible effects of these variations on corporate governance policies and practices;

CFA® 2025 Level II Curriculum, Volume 3, Module 17.