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Agency theory

Total questions: 10

Worksheet time: 3mins

Name
Class
Date
1.

Agency theory is to explain and resolve issues in the relationship between business principals and their agent

a)

TRUE

b)

FALSE

2.

What is Agency Problem?

a)

arises when personal interests undermine professional responsibilities


b)

Arises from agent prioritizing self-interest over the principal's.


3.

Conflict of interest arises when a person neglects duties to their employer or exploits their position for personal gain

a)

TRUE

b)

FALSE

4.

What are the typical types of agency theory relationships?

a)

Shareholders VS Customers

b)

Management VS Creditors

c)

Customers VS Suppliers

d)

Shareholders VS Creditors

5.

What is the nature of a dispute that arises when the agenda of stockholders clashes with other groups within a company?

a)

It's a shareholder dispute involving employees, customers, and management

b)

It's a customer satisfaction issue affecting shareholders and management.

6.

Is the Enroll scandal related to the agency problem that was discussed earlier?

a)

TRUE

b)

FALSE

7.

How many expertise that have been discussed?

a)

5

b)

7

c)

10

d)

80

8.

Zaid Ibrahim is the Principle of Zaid Co

a)

TRUE

b)

FALSE

9.

Who is Chew Song Kok?

a)

customer

b)

The one who create agency theory

c)

victim

d)

agent

10.

The following are methods to solve and prevent

Agency Problem EXCEPT?

a)

Full transparency management

b)

Restriction in agent Capabilities

c)

Check and Balance Method

d)

report to auditor