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Agency costs

• The incremental costs of having an agent make decisions for a principal.

• Costs borne by shareholders to prevent or minimize agency problems and to contribute to the maximization of the owners' wealth. They include monitoring and bonding expenditures, opportunity costs, and structuring expenditures.

 
 

Follow this link for all the terms related to cost.

 
 Embedded terms in definition
 Agency problem
Agency
Agent
Opportunity cost
Principal
Shareholders
Structuring
 
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Helping Disabled or Elderly Relatives With Money Management, Even From Far Away: Millions of people serve as financial caregivers for ill or elderly spouses, parents, children or other loved ones. They perform services that include paying bills, handling deposits and investments, filing insurance claims and preparing taxes. Because this role can be costly and physically and emotionally exhausting, especially for a caregiver who lives far away or has the usual time-demands, FDIC Consumer News offers some suggestions. More...

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