question archive Which of the following is FALSE?   1) Agency problem will not exist so long as the managers own at least 50% of the firm's equity

Which of the following is FALSE?   1) Agency problem will not exist so long as the managers own at least 50% of the firm's equity

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Which of the following is FALSE?

 

1) Agency problem will not exist so long as the managers own at least 50% of the firm's equity.

 

2) Agency costs are borne by the shareholders.

 

3) The risk of a hostile takeover may help reduce agency problems.

 

4) Performance plans and incentive plans are examples of agency costs.

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