Which of the following is an example of agency cost?

A. payment of income tax

B. costs incurred for setting up an agency

C. failure to make an investment that would make shareholders wealthier

D. payment of interest

C

Explanation:

Agency costs occur when a company's management or "agent" places his own personal financial interests above those of the shareholder.

This may include the usage of the company resources for their own benefit rather than increase their shareholders wealth