ICAB PL Financial Management Practice Questions - ICAB CA Professional Level Financial Management (Bangladesh) Exam

In corporate finance and agency theory, which of the following is categorized as an agency cost?

Expenditure incurred on independent external audits and non-executive director fees to oversee management Interest payments paid on long-term corporate bank borrowings Corporate income taxes paid to the National Board of Revenue (NBR) Depreciation charges recorded on plant and machinery

Correct Answer:

Expenditure incurred on independent external audits and non-executive director fees to oversee management

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