Agency cost can be decreased by

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Agency cost can be decreased by

A. Decentralized Structure

B. Centralized and Decentralized Structure

C. Centralized Structure

D. None of it

Answer: Option C

Solution (By Examveda Team)

Agency cost can be decreased by Centralized Structure. Centralized organization can be defined as a hierarchy decision-making structure where all decisions and processes are handled strictly at the top or the executive level.

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