The costs incurred due to a conflict of interest between stockholders and management are called agency costs. Therefore, the option C holds true.
The agency costs can be referred to or considered as the costs that are incurred by an organization in contingencies of their occurrence. These costs are generally incurred when there are conflicts between the stockholders and the top level management of an organization regarding their individual interests.
Therefore, the option C holds true and states regarding the significance of agency costs.
Learn more about agency costs here:
https://brainly.com/question/17371036
#SPJ4
The question seems to be incomplete. It has been added below.
The costs incurred due to a conflict of interest between stockholders and management are called ______ costs.
A. Management costs
B. Stockholders costs
C. Agency Costs
D. Conflict costs
