Which of the following is an example of agency cost?
A) costs incurred for setting up an agency
B) failure of making the best investment decision
C) payment of income tax
D) payment of interest
B
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Joshua is a Director of Great Lakes Limited, a company that manufactures sporting equipment. At one meeting of the Board of Directors, Joshua was informed about some of the company's plans to expand its operations in a new product line
Armed with this information, Joshua started his own company which manufactured and sold the same products that Great Lakes had planned to commence manufacturing thereby capturing the initial market. Which of the following statements is correct? A) Joshua does not owe any duties to Great Lakes B) Joshua has not breached any duty owed to Great Lakes as any person is free to take advantage of a new business opportunity. C) By starting his own company on the basis of information learnt at the meeting, Joshua has breached a fiduciary duty owed to Great Lakes. D) As Joshua did not steal the information from confidential files, he is free to use it. E) Simply by starting his own company in order compete with Great Lakes; Joshua has breached a fiduciary duty owed to Great Lakes.
MRO goods are also known as indirect goods
Indicate whether the statement is true or false