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
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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.