Question: Agency theory explains manager's behavior. Which one is false? The agency is defined as a relationship by consent between two parties, whereby one party agrees

Agency theory explains manager's behavior. Which one is false?
The agency is defined as a relationship by consent between two parties, whereby one party agrees to act
on behalf of the other
Agency theory assumes that a conflict of interest exists between the owners of a firm and the managers
Generally agency costs of a firm are not controlled by firm itself
Financial reporting should provide the information for the potential agency costs of the firm
Agency theory explains manager's behavior. Which one is false? The agency

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