Economics · Corporate Governance
Which of the following is an example of a principal-agent problem in financial management?
- 1Shareholders voting against a dividend proposal
- 2Managers investing in low-risk projects to protect their jobs✓
- 3Creditors demanding higher interest due to higher gearing
- 4A company delaying supplier payments to manage cash flow
Correct answer
Managers investing in low-risk projects to protect their jobs
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