Question: Which one is false? A. The agency is defined as a relationship by consent between two parties, whereby one party agrees to act on behalf

Which one is false?

A. The agency is defined as a relationship by consent between two parties, whereby one party agrees to act on behalf of the other

B. Agency theory assumes that a conflict of interest exists between the owners of a firm and the managers

C. Generally agency costs of a firm are not controlled by firm itself

D. Financial reporting may provide the information for the potential agency costs of the firm

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