Vidyalelo
Management · Q755

International Finance and Treasury

Graduate and Post Graduate · Management · question 755

Q755

Agency cost can be decreased by

A.
Decentralized Structure
B.
Centralized and Decentralized Structure
C.
Centralized Structure
Answer
D.
None of it

Answer: Option C

Solution

Answer: Option C
Solution:
Agency cost can be decreased by Centralized Structure. Centralized organization can be defined as a hierarchy decision-making structure where all decisions and processes are handled strictly at the top or the executive level.