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Basic Question 0 of 7

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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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes

Barnes

Learning Outcome Statements

evaluate the effectiveness of a company's corporate governance policies and practices;

CFA® 2026 Level II Curriculum, Volume 3, Module 17.