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Basic Question 2 of 8

In the principal-agent framework, the ultimate principals are ______.

A. managers
B. the board of directors
C. shareholders
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User Contributed Comments 1

User Comment
Antoinepo Shareholders are the principal of the board of directors which are the principal of managers which are the principal of typical agent.
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Your review questions and global ranking system were so helpful.
Lina

Lina

Learning Outcome Statements

describe global variations in ownership structures and the possible effects of these variations on corporate governance policies and practices;

CFA® 2025 Level II Curriculum, Volume 3, Module 17.