. Agency theory is a management and economic theory that attempts to explain relationships and...
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. Agency theory is a management and economic theory that attempts to explain relationships and self-interestin business organisations. It describes the relationship between principals/agents and delegation of control. Itexplains how best to organise relationships in which one party (principal) determines the work and whichanother party (agent) performs or makes decisions on behalf of the principal (Jensen and Meckling, 1976;Schroeder et al., 2011).Critically analyze the agency theory. (10
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