In a publicly traded company, which of the following can do most to help minimiz

Question

In a publicly traded company, which of the following can do most to help minimize agency issues?

Question 10 options:

a)

Reduce oversight of company spending policies

b)

Have the company fully owned by a single person

c)

Have a very actively involved board of directors

d)

Ensure the CEO and Chairman of the board are two different people

a)

Reduce oversight of company spending policies

b)

Have the company fully owned by a single person

c)

Have a very actively involved board of directors

d)

Ensure the CEO and Chairman of the board are two different people

Explanation / Answer

In a publicly traded company,- (d) Ensuring the CEO and Chairman of the board are two different people, this option can do most to help minimize agency issues.

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