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Basic Question 2 of 8
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 used your notes and passed ... highly recommended!
Lauren
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.