Consider the following statements regarding ownership structure: Assertion (A): Concentrated ownership can reduce classic manager-shareholder agency conflicts. Reason (R): Large shareholders have both the economic incentive and capacity to monitor managerial decisions effectively. Select the correct option:

Question

Indian Polity · Agency Theory and Ownership Structure

Verified Solution4 OptionsUpdated: October 2026👁️1 View

Share:

Correct answer

Both A and R are true, and R is the correct explanation of A.

Save this question and verified answer as a clean study sheet with live clickable link.

👥

Challenge your peer aspirants on WhatsApp or Telegram to solve this question!

Online Test Series

Practice full-length mock tests with real exam timers, instant score analysis, and all-India ranking.

Chapter Practice

Want more practice questions on Agency Theory and Ownership Structure?

Solve complete topic-wise tests with detailed solutions on GkGet.

Recommended practice questions in Indian Polity · Agency Theory and Ownership Structure

The arrival of which commission in India triggered widespread protests, including mass hartals across the country in 1928?

Which of the following leaders was instrumental in initiating and leading India’s struggle for independence?

Answer 1

A is false, but R is true.

Answer 2

A is true, but R is false.

Answer 3

Both A and R are true, but R is not the correct explanation of A.

Answer 4

Both A and R are true, and R is the correct explanation of A.

Related Practice Questions