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Which best explains why a firm entails agency costs?

  1. The desire of the owners to maximise their profit.
  2. Human beings inherent desire to act in their own self-interest.
  3. The inability to monitor employees at all times during the workday.
  4. The nature of a hierarchy, which gives people within an organisation different levels of responsibility.

Firm Valuation Agency Agreements Management
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Question added by Muhammad Hamid Munir PMP , Program Manager , Ericsson AB
Date Posted: 2015/05/27
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